Citi: quarter still boosted by cost reductions
(CercleFinance.com) - On Tuesday, Citigroup reported a better-than-expected Q3 profit, again boosted by its cost-cutting efforts.
The US bank's quarterly profit came to $3.2bn, or $1.51 per share, over the past three months, compared with $3.5bn, or $1.63, a year ago.
Net banking income, on the other hand, rose by 1% to $20.3bn, above the $19.4bn expected by analysts.
In a statement, Group CEO Jane Fraser said the results demonstrated that the bank's strategy was continuing to move in the right direction.
This "transformation" - aimed primarily at generating efficiency gains by simplifying business lines - resulted in a further 2% reduction in expenses during the quarter.
From an operational point of view, wealth management revenues rose by 9%, thanks to an increase in assets entrusted by customers and higher commission income.
Revenues generated by the retail banking division in the US rose by 3%, notably driven by the branded cards business, which grew by 8% thanks to the arrival of new customers.
Citi shares were expected to rise by more than 2% at the opening on Tuesday morning in the wake of this publication.
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