Citigroup Q3 Profit Jumps 40%

Citigroup reported third-quarter profit of about $5.25 billion, or $2.85 per share, up 40% from a year earlier and ahead of analysts’ expectations; revenue rose 8% to $23.85 billion, its strongest third-quarter result in a decade. Growth came from services and wealth management, along with stronger investment banking revenue, while the comparison was boosted by a goodwill impairment recorded the prior year related to Banamex. Fixed-income trading had its best third quarter in at least a decade, but overall trading revenue rose only 2% year over year and fell from the previous quarter, mainly because of weaker equity trading. Citi’s return on tangible common equity exceeded its stated target, and the bank returned $4.1 billion to shareholders during the quarter. Its shares dipped after the results amid broader concerns about rising bond yields and the potential effect of higher funding costs on lending and dealmaking.