Citigroup Posts Q3 EPS of $2.85, Beating Expectations
C sits 42% above its 52-week low of $93.66.
Summary
Citigroup reported third-quarter earnings per share of $2.85, exceeding consensus estimates, with revenue of $23.8 billion also beating expectations. Net income was $5.2 billion, return on tangible common equity was 11.5%, and the CET1 ratio was 12.8%, with $4.1 billion returned to shareholders. Net credit losses were $2.22 billion and the provision for credit losses was $2.59 billion, while U.S. card loss provisions rose to $1.9 billion. Operating expenses fell 2% to $14 billion, period-end loans rose 12% to $820 billion, and the allowance for credit losses stood at $22.4 billion. Trading revenue was strong with equities and fixed income up, investment banking performance was mixed, and consumer card profits dropped 8% year-over-year despite card spending rising approximately 13% and card loan growth of approximately 9%. Wealth Management revenue rose 15% to $3.269 billion, led by Citigold, Private Bank and Wealth at Work, with client investing assets climbing 15% year over year. The bank expects about $9 billion cumulative translation adjustment losses when Banamex is classified held-for-sale, with deconsolidation planned for early 2027 and divestiture via a standalone IPO in 2027. Management raised the 2026 net interest income outlook to mid-high single-digit growth and targets return on tangible common equity above 11% for 2026, with year-to-date RoTCE at 12.6%. This follows a strong Q2 where net income rose 45% year-over-year on record revenue, and management had guided for higher second-half expenses. The $30 billion buyback program remains active, providing additional support. Next catalyst is the earnings call, where guidance on net interest income and credit costs will be key.
Updated with a Wiseek News report · What changed
Updates
· Wiseek News — Citigroup expects about $9B cumulative translation adjustment losses when Banamex is classified held-for-sale, with deconsolidation planned for early 2027.
- Banamex Divestiture — Banamex divestiture is planned via a standalone IPO in 2027.
- Trading and Investment Banking — Trading revenue was strong with equities and fixed income up; investment banking performance was mixed.
- Consumer Card — Consumer card profits dropped 8% year-over-year, while card spending rose approximately 13% and card loan growth was approximately 9%. U.S. card loss provisions rose to $1.9 billion.
- Wealth Management — Wealth Management revenue rose 15% to $3.269 billion, led by Citigold, Private Bank and Wealth at Work. Client investing assets climbed 15% year over year.
- Capital Return — Bank returned capital via dividends.
- Financial Targets — Targeted return on tangible common equity (RoTCE) above 11% for 2026; year-to-date RoTCE was 12.6%. Raised 2026 net interest income outlook to mid-high single-digit growth.
All 14 details
- Trading revenue strong: equities up, fixed income up.
- Investment banking performance mixed.
- Bank returned capital via dividends.
- Consumer card profits dropped 8% year-over-year.
- Card spending rose approximately 13%.
- Card loan growth approximately 9%.
- U.S. card loss provisions rose to $1.9 billion.
- Banamex divestiture planned via standalone IPO in 2027.
- Wealth Management revenue rose 15% to $3.269 billion.
- Wealth Management revenue led by Citigold, Private Bank and Wealth at Work.
- Client investing assets climbed 15% year over year.
- Targeted return on tangible common equity (RoTCE) above 11% for 2026.
- Year-to-date RoTCE was 12.6%.
- Raised 2026 net interest income outlook to mid-high single-digit growth.
· SEC 8-K — Citigroup's Q3 net income was $5.2 billion, RoTCE 11.5%, CET1 ratio 12.8%, and it returned $4.1 billion to shareholders.
At the time of this announcement, C was trading at $132.77 on NYSE in the Finance sector, with a market capitalization of approximately $221.3B. The 52-week trading range was $93.66 to $147.96. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.