Citi Reports Strong Q3 Earnings with Record Revenue and Improved Returns
Citigroup (C) reported its highest third-quarter revenue in a decade at $23.8 billion, driven by strong performance across several business segments including Services, Wealth, and Markets. Net income rose 40% year-over-year to $5.2 billion, with Return on Average Tangible Common Equity improving significantly to 11.5%. The company also raised its full-year ROTCE guidance above 11%, reflecting improved profitability. Citi's Services segment saw a 15% revenue increase due to growth in Treasury and Trade Solutions, while the Wealth division reported $38 billion in net new investment assets. Operating expenses decreased by 2%, aided by cost-saving initiatives such as reduced technology vendor spend through AI tools like Devon. The company maintained its CET1 ratio at 12.8%, well above regulatory requirements. Despite strong results, Citi's management warned of potential seasonal declines in the fourth-quarter Markets segment and ongoing challenges in Europe. Additionally, concerns were raised about cybersecurity risks associated with AI advancements.
Tickers: $C
Topics: buybacks earnings net income revenue growth ROTCE
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Part of the story Goldman Sachs Reports Strong Q3 Earnings with Record Revenues Across Key Divisions (13 articles)