Citigroup Profit Hit by Credit Losses, Allowances for Bad Loans

Group 1 - Citigroup's third-quarter profit fell due to increased credit losses and reserves for bad loans, leading to a decline in shares [1] - Net income decreased by 9% year-over-year to $3.24 billion, or $1.51 per share, although it exceeded analyst estimates [1] - Revenue, net of interest expense, rose by 1% to $20.32 billion, also surpassing expectations [1] Group 2 - The cost of credit increased to $2.7 billion from $1.8 billion in 2023, primarily driven by higher credit card losses and a rise in the allowance for credit losses, which grew to $22.1 billion from $20.2 billion [1] - Revenue growth was noted across all business segments except "all other," with the investment banking unit showing a significant 31% increase to $934 million [1] - CEO Jane Fraser emphasized that the results indicate the bank is moving in the right direction, with positive operating leverage, share gains, and fee growth [2]