Citi reports a rise in earnings with every business posting record third-quarter revenue

Core Insights - Citigroup reported a strong third quarter, with all five divisions achieving record revenues, leading to an overall revenue increase of 9% to $22.1 billion [1][2]. Group 1: Revenue Performance - The banking division, which includes investment and corporate banking, was the largest contributor, with a revenue increase of 34% [2]. - The markets division, encompassing sales, trading, and financing, generated $5.6 billion in Q3, making it the highest earner [2]. - The services, wealth, and US personal banking divisions each experienced growth of 7% to 8% during the quarter [2]. Group 2: Profitability Metrics - Net interest income rose by 12%, surpassing estimates by approximately $0.5 billion, contributing to a positive market reaction with shares up about 1% [3]. - Credit costs amounted to $2.5 billion, primarily due to losses in US cards and a minor firmwide allowance for credit losses [3]. Group 3: Expenses and Charges - A goodwill impairment charge related to the sale of a minority stake in Banamax impacted expenses, which increased by 9%, although this non-cash charge did not affect capital [4]. - Excluding the one-time charge, Citigroup's expenses rose by about 3%, attributed to higher compensation and the effects of a weaker dollar [4]. Group 4: Stock Performance - Citigroup shares have increased over 36% year-to-date, making it the second-best performer among the six largest US banks [5].