Citigroup profit drops on bigger stockpiles for potential loan losses
By Tatiana Bautzer and Manya Saini
Oct 15 (Reuters) -Citigroup's C.N profit fell 9% in the third quarter as it set aside more money to cover the risk of loan defaults, particularly on credit cards.
The third-largest U.S. lender's net income dropped to $3.2 billion, or $1.51 per share, compared with $3.5 billion, or $1.63 per share, a year earlier, it reported on Tuesday.
Revenue rose 1% to $20.3 billion.
Citi's dealmakers joined rivals at JPMorgan Chase JPM.N and Wells Fargo WFC.N in benefiting from a rebound in capital markets as corporate clients issued more debt and equity.
Investment banking was a bright spot for the second straight quarter, with revenue jumping to $934 million. Wall Street executives are optimistic that the Federal Reserve's interest-rate cut last month will pave the way for more deals and initial public offerings.
Services revenue climbed 8% to $5 billion, fueled by a 24%surge in revenue for securities services to $1.4 billion.
A stock-market rally at the end of the quarter propelled equities trading revenue up 32% to $1.2 billion, lifting overall markets revenue 1%.
CEO Jane Fraser has sought to grow profits, simplify the company and fix its longstanding regulatory problems.
On Friday, Bank of America's profit in the third quarter fell on the back of lower interest income. Earnings at rival JPMorgan Chase JPM.N and Wells Fargo WFC.N beat estimates last week, underpinned by strong consumer finances.
REGULATORY EFFORTS
In 2020, the Office of the Comptroller of the Currency and the Federal Reserve fined Citi $400 million and ordered the bank to fix persistent risk management and data governance failures.
The regulators again fined Citi in July for failing to make enough headway on those problems. It got some relief when the Federal Reserve terminated a 2013 enforcement action on the bank's anti-money laundering programs earlier this month.
Citi is giving special attention to data, an area "where we got the feedback that we weren't moving fast enough", Chief Financial Officer Mark Mason told investors in September.
It has tasked technology head Tim Ryan to work alongside Chief Operating Officer Anand Selva in fixing the bank's longstanding data management issues. The bank has also added a section to quarterly filings to address its work on the multiple regulatory penalties, known as consent orders.
Citi shares have gained 28% so far this year, while an index tracking large-cap banks .BKX is up 25% and the S&P 500 index .SPX has climbed 23% over the same period.
Citigroup shares outperform banking index https://reut.rs/4f7gjoP
Reporting by Tatiana Bautzer in New York and Manya Saini in Bengaluru, editing by Lananh Nguyen and Devika Syamnath
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
