Citigroup reports 25% lower 3rd quarter profits but beats revenue estimates.
By The Exchange Team
Citigroup's third-quarter profitability plunged 25% as credit loss provisions grew and investment banking slumped.
Citi shares rose 0.65% as revenue and earnings per share beat Wall Street projections, supported by higher interest rates.
The bank reported $18.51 billion in revenue, compared to $18.25 billion forecast. This was up 6% yearly.
In the quarter ended Sept. 30, net income was $3.48 billion, or $1.63 per share, down 25% year over year.
The company sold its Asia consumer division for $520 million pretax. Citi earned $1.50 per share excluding this item.
According to Refinitiv, the adjusted figure was higher than analysts' projections of $1.42 per share.
Profit fell because of higher loan loss reserves. Citigroup's credit loss allowance expanded by $370M during the quarter, compared to a $1B release last year.