📊 Citigroup's Q3 2024 results: profit falls, but investment banking grows!🏦
Citigroupshares responded by rising by 2 % in the premarket, now unfortunately over 5 % They are writing off 5%!
Citigroup $CBank released its third quarter results today along with others and it shows some interesting numbers. The company reported revenue growth of 1 % to $20.32 billion, beating analysts' expectations of $19.84 billion. Despite the profit decline of 9 % the company is still showing strong performance in key areas.
Key points:
Earnings per share (GAAP): $1.51, with analysts expecting $1.31 - a positive surprise for the markets.
Investment banking revenue growth: upyear-over-year by 16 % to $1.6 billion, expected to decline
U.S. personal banking revenue: up by 3 % to USD 5.05 billion due to higher net interest income. 📈
Net credit losses: up by 33 % to USD 2.17 billion, showing that the credit market remains a risk factor.
Partnership with Mastercard: Citigroup is strengthening its position in cross-border payments through a strategic partnership with Mastercard $MA, which may bring new opportunities in global finance. 🌍💳
Partnership with Apollo Global Management $APO: The$25 billion partnership may bring new growth opportunities in credit financing, an interesting move for the company's future development.
Other interesting numbers:
Loan volume up by 3 % to $689 billion, mainly due to growth in the U.S. personal banking industry.
Deposit volume reached $1.3 trillion (+3 %)again reflecting the growth in services.
Book value per share increased by 3 % to $101.91, indicating healthy growth in the company's value.
Although net income declined year-over-year by 9 % to $3.24 billion, Citigroup still maintains a strong market position. Moreover, its new partnerships with Apollo and Mastercard are expected to further boost its growth ambitions.
Outlook:
Citigroup reiterated its adjusted revenue guidance for fiscal 2024of USD 80.00-81.00 billion. While this is in line with market expectations, future developments in lending rates and macroeconomic conditions will be key.
Although the Citigroup is struggling with declining profits, its strategic moves in partnership and investment banking are promising.
What are your thoughts on today's bank results and investor reaction?
For a bank that went mainly up, it doesn't look like that here yet. Even in terms of growth over the past few years, $C is well behind other major players in the sector. I don't have it in my portfolio and am not considering buying it.