Business
USA | Oct 21, 2021

Citigroup reports big jump in third quarter earnings

/ Our Today

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Citigroup Inc. has reported net income for the third quarter 2021 of $ US$4.6 billion, or US$2.15 per diluted share, on revenues of US$17.2 billion. 

This compared to net income of US$3.1 billion, or US$1.36 per diluted share, on revenues of US$17.3 billion for the third quarter 2020. Revenues declined one per cent from the prior-year period, including a pre-tax loss of approximately US$680 million related to the sale of the Australia consumer business in Global Consumer Banking. Excluding the loss on sale, revenues increased three per cent, largely driven by growth across the Institutional Clients Group. 

Net income of US$4.6 billion increased 48 per cent from the prior-year period, driven by a lower cost of credit, partially offset by the lower revenues and higher expenses. Earnings per share of US$2.15 increased 58 per cent from the prior-year period, reflecting the growth in net income, as well as a three per cent decline in shares outstanding.

Citigroup’s book value per share of US$92.16 and tangible book value per share of US$79.07 increased nine per cent and 10 per cent, respectively, largely driven by net income. At quarter end, Citigroup’s CET1 Capital ratio was 11.7 per cent, a decrease from the prior quarter. Citigroup’s SLR for the third quarter 2021 was 5.8 per cent, unchanged from the prior quarter. During the quarter, Citigroup repurchased 43 million common shares and returned a total of US$4.0 billion to common shareholders in the form of common share repurchases and dividends.

Jane Fraser, Citi CEO. (Photo: wikipedia.org)

Jane Fraser, Citi CEO, said: “The recovery from the pandemic continues to drive corporate and consumer confidence and is creating very active client engagement as you can see through our strong results in investment banking and equity markets, both up approximately 40 per cent year-over-year, in addition to double-digit fee growth in treasury and trade solutions as we help our clients reposition their supply chains. And while strong consumer balance sheets have impacted lending, we are seeing higher consumer spending across our cards products.

“We also continue to show momentum in deposits and wealth management AUM as well as growing engagement across our digital channels. Overall, our revenues were three per cent higher than last year, excluding the impact of the sale of our consumer business in Australia. We are moving forward with urgency on our top priorities in order to responsibly narrow the returns gap with our peers: the transformation, refreshing our strategy and building a culture of excellence.”

Fraser concluded: “So far this year, we have returned close to US$11 billion to shareholders through a healthy dividend and stock repurchases. We remain committed to returning excess capital over and above the amount necessary to invest in our franchise and to maintain our safety and soundness. Overall, I am quite pleased with US$4.6 billion in net income given the environment we are operating in. While we have much work ahead, we are getting results from the investments we have been making and seeing both the strength and durability of our franchise.”

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