Citigroup reports 25% decline in third-quarter profits but tops revenue expectations

Jane Fraser speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019.

Net income at Citigroup declined year over year as the bank bulked up its credit loss provisions and investment banking fell.

According to Refinitiv, the bank reported $18.51 billion in revenue. This was up six percent over the previous year.

The net income fell by 25%. It's not clear if the earnings per share reported by Citi is in line with estimates.

An increase in loan loss reserves contributed to the decline in profit. The allowance for credit losses at Citigroup increased by a net of $370 million during the quarter, compared with a release of more than $1 billion in the same period last year. The credit loss provision for the quarter was over one billion dollars.

Revenue for personal banking was up 10% year over year.

The bank's shares rose before the market opened.

Citigroup reported over $3 billion in fixed income revenue and over $1 billion in equity revenue. Revenue of $3.19 billion and $965 million were expected by analysts.

Concerns that the U.S. is facing a recession have hammered bank stocks this year. Citigroup is the lowest-valued of the U.S. peers.

Jane Fraser's efforts to turn around Citigroup could be hampered by the potential for a global economic slowdown as central banks battle inflation. Fraser, who took over the New York-based bank last year, plans to exit retail banking markets outside the U.S.

A $520 million pretax benefit was reported by Citigroup in the third quarter. Most institutional client services in Russia will be ended by the first quarter of next year, according to the bank.

Citigroup has more overseas operations than its rivals because of the impact of a surging U.S. dollar.

Like the rest of the industry, Citigroup's investment banking revenue has declined. Investment banking revenue at the bank was down more than half a billion dollars for the quarter.

Morgan Stanley missed estimates on the top and bottom lines in the third quarter. Bank of America and Goldman Sachs will report on the same day.

You can read the press release here.

The story is getting better. You can check back for the latest news.