Citigroup Inc. (C) reported third quarter earnings per share of $1.40 compared to $2.07, a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $0.92, for the quarter. Analysts’ estimates typically exclude special items. The company said its third quarter net income declined 34% year-on-year, largely driven by the lower revenues, an increase in expenses and higher credit costs.
Third quarter revenues were $17.3 billion compared to $18.6 billion, prior year. The company said its third quarter revenues decreased 7%, primarily reflecting lower revenues in Global Consumer Banking and Corporate / Other, partially offset by growth in Fixed Income Markets, Investment Banking, Equity Markets and the Private Bank in the Institutional Clients Group. Analysts expected revenue of $17.22 billion, for the quarter.
For the third quarter, cost of credit was $2.3 billion, increased 8% from last year, largely reflecting an increase in ICG allowance for credit loss reserves.
Michael Corbat, Citi CEO, said, “We continue to navigate the effects of the COVID-19 pandemic extremely well. Credit costs have stabilized; deposits continued to increase; and revenues are up 3% year-to-date. Our Institutional Clients Group again had very strong performance. Although Global Consumer Banking revenues remained lower as a result of the pandemic, we did see higher activity in our mortgage and wealth management products.”
Citigroup said it remains committed to returning capital to shareholders, subject to the industry-wide approach determined by the Federal Reserve.
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