Citigroup (C) shares lost ground Tuesday after the bank’s third-quarter profit fell as its credit losses and reserves to cover bad loans increased.
Citi reported net income dropped 9% year-over-year to $3.24 billion, or $1.51 per share, although that exceeded estimates by analysts surveyed by Visible Alpha. Revenue, net of interest expense, was up 1% to $20.32 billion, also more than expected.
The company’s cost of credit climbed to $2.7 billion from $1.8 billion in 2023. It said that was driven primarily by higher credit card losses, and a rise in the allowance for credit losses, which rose to $22.1 billion from $20.2 billion.
Citi noted its revenue growth came from gains across all its businesses, except “all other.” Especially strong was its investment banking unit, which posted a 31% jump to $934 million.
Chief Executive Officer (CEO)Jane Fraser pointed to her efforts to revamp the bank, saying the results show “we are moving …