Citigroup reported third-quarter net income of $5.25 billion, or $2.85 per share, compared with $3.8 billion, or $1.86 per share, a year earlier. Profit increased 40% year on year, while independent reporting said the per-share result exceeded the market consensus of $2.66. Net income was nevertheless 10% lower than in the second quarter.
Return on tangible common equity reached 11.5% for the quarter and 12.6% for the first nine months, ahead of Citi's 11% target for 2026. The bank returned $4.1 billion to shareholders through dividends and repurchases during the quarter. Its shares remained higher for the year despite a modest decline in early trading after the results.
SERVICES AND WEALTH BROADENED REVENUE GROWTH
Investment banking revenue increased 9% from a year earlier to $1.35 billion, while broader banking revenue, including corporate lending, rose 6% to $1.74 billion. The gains helped offset a sequential slowdown in underwriting and deal activity after a stronger first half.
Trading revenue rose 6% year on year to $6.11 billion, with equities up 14% and fixed income up 4%. Trading was 13% lower than in the second quarter, showing the effect of moderating client activity and volatile government-bond markets.
CARDS AND BANAMEX SET THE NEXT TESTS
Services revenue increased 15% and profit rose 27%, while wealth-management revenue and client assets each grew 15%. Credit-card profit fell 8% as higher rewards, partner payments and credit provisions outweighed a 13% increase in spending and 9% loan growth.
Citi continues to own 51% of Banamex and expects to remove the Mexican unit from its balance sheet before a planned stock-market listing next year. That prospective milestone, along with the next quarterly results, will test whether broader fee and net-interest-income growth can continue to lift returns while card costs and regulatory remediation remain under scrutiny.