Citi CEO Jane Fraser Prepares For ‘AI-Driven Future’ As Bank Posts Best Q3 Revenue In A Decade

• Q3 revenue rose 8% to $23.85 billion, ahead of analysts’ expectations of $23.72 billion.
• Citi’s Services division led growth, with revenue rising 15% to $6.6 billion.
• Q3 Wealth Management revenue climbed 15% to $3.3 billion.

Citigroup (C) reported stronger-than-expected third-quarter earnings on Tuesday, posting its highest Q3 revenue in a decade, boosted by growth across its banking, trading and wealth management businesses.

CEO Jane Fraser credited the bank’s performance to the “disciplined and consistent execution” of its strategy, highlighting stronger profitability and continued investments in AI.

“Our performance in the quarter, which included the best third-quarter revenue in a decade, positive operating leverage and meaningful improvement in our returns, reflects the continued disciplined and consistent execution of our strategy,” Fraser said.

“We returned over $4 billion to common shareholders while continuing to invest in growth and prepare for an AI-driven future. We expect to exceed this year’s return target.” Earlier this year, Citi authorized a multi-year $30 billion common stock repurchase program.

C shares were down 0.7% at the time of writing.

Q3 Net Income Surges Even As Provisions Rise

Citigroup reported earnings of $2.85 per share, beating Wall Street’s estimate of $2.62, according to Fiscal.ai. Revenue rose 8% to $23.85 billion, slightly ahead of consensus estimates of $23.72 billion.

Net income surged 40% to $5.2 billion while net interest income increased 14%. However, provisions for credit losses rose 6% to $2.59 billion.

Citi’s Services division led growth, with revenue rising 15% to $6.6 billion, supported by higher deposits, payments activity and fees. Markets revenue increased 6% to $6.1 billion, with equities trading up 14% and fixed-income trading gaining 4%.

Banking revenue rose 6% to $1.7 billion, supported by a 9% increase in investment banking revenue.

Wealth Management revenue climbed 15% to $3.3 billion, driven by higher deposits and investment fees. Meanwhile, U.S. Consumer Cards revenue remained largely unchanged at $4.7 billion.

Retail’s Take On C

Retail sentiment on Stocktwits surrounding C turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘high’ message volumes.

C is the top-performing major banking stock so far this year, gaining more than 11%. This compares with JPMorgan’s 5% rise, Wells Fargo’s 13% slump, and Goldman Sachs ’ 1.4% gains.

Also read: UNH Stock Gains After Q3 Earnings Beat, Guidance Raise – CEO Credits ‘Discipline And Execution’

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