Citigroup Drops Despite Happier Q3 Results
Citigroup (NYSE:C) reported stronger-than-expected results for its third quarter on Thursday as trading revenue helped the company deliver a major increase in profits.
The bank reported $2.15 in earnings per share on $17.15 billion in revenue. Wall Street was anticipating earnings per share of $1.65 on revenue of $16.97 billion, based on consensus estimates.
Net income came in at $4.6 billion, compared with $3.1 billion a year ago. That is a 48% increase year over year.
Trading revenue for fixed income and equity markets topped estimates at $3.18 billion and $1.23 billion, respectively. Analysts expected $3.07 billion in revenue from fixed income trading and $909.7 million in revenue from equities trading, according to estimates. Equity trading revenue was up 40% year over year.
Said CEO Jane Fraser, "The recovery from the pandemic continues to drive corporate and consumer confidence and is creating very active client engagement as you can see through our strong results in Investment Banking and Equity Markets, both up approximately 40% year-over-year, in addition to double-digit fee growth in Treasury and Trade Solutions as we help our clients reposition their supply chain."
Citi released $1.16 billion in loan loss provisions, resulting in a net benefit of $192 billion for the quarter. Banks built up massive reserves during the economic downturn last year but have released them as the economy has recovered, boosting their bottom lines.
C shares descended 32 cents to $69.94
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