Citigroup posts largest quarterly profit of Covid-19 pandemic
Citigroup Inc.
$59.14
11:10 19/04/24
Banking giant Citigroup posted its largest quarterly profit of the Covid-19 pandemic on Tuesday, as trading bonds afforded the firm another windfall.
Citigroup posted a net income of $3.2bn for the third quarter, or $1.40 on a per share basis, more than twice what it reported in the second quarter but still down 34% year-on-year.
The New York-based group's performance was partly aided by the fact that it set aside just $314.0m for future loan losses throughout the quarter, a drastic reduction when compared to the $4.4bn and $5.6bn saved for the same purpose in the first and second quarters, respectively.
Citigroup said earnings would have been even stronger if it had not been forced to pay a $400.0m fine levied against it by banking regulators due to a failure to address concerns regarding its controls and risk management systems.
Revenues were broadly in line with estimates at $17.3bn, driven by an 18% increase in fixed-income trading revenues, a 15% improvement in equities trading revenues and a 14% jump in investment banking fees.
On the other hand, revenue from Citi's retail banking operations fell slightly, while the company's branded card business reported a decline in activity.
As of 1400 BST, Citigroup shares were up 1.57% in pre-market trading at $46.60 each.