Citigroup reported third quarter earnings that beat analysts’ expectations, on the back of capital markets revenues and the release of loan loss reserves.
The banking behemoth’s earnings for the three months ending in September surged +58% from the year-ago quarter to $2.15 per share, well above the Street consensus expectation of $1.65 per share. Citigroup also released $1.16 billion in loan loss reserves, (which was set aside during the peak of the pandemic in 2020) which was a boost to its earnings.
Revenues fell -13% year-over-year to $17.2 billion, vs. analysts' estimates of $16.9 billion.
“The recovery from the pandemic continues to drive corporate and consumer confidence and is creating very active client engagement as you can see through our strong results in Investment Banking and Equity Markets, both up approximately 40% year-over-year, in addition to double- digit fee growth in Treasury and Trade Solutions as we help our clients reposition their supply chains," said CEO Jane Fraser "And while strong consumer balance sheets have impacted lending, we are seeing higher consumer spending across our cards products."