On October 13, 2023, Citigroup Inc (C, Financial) released its third quarter earnings report, revealing a 9% increase in revenue growth despite facing several challenges. The company's net income remained steady at $3.5 billion, or $1.63 per diluted share, on revenues of $20.1 billion. This compares to the same net income and diluted share value on revenues of $18.5 billion for the third quarter of 2022.
Performance Overview
Citigroup's CEO, Jane Fraser, commented on the company's performance, stating,
Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%. Services, our fastest growing business, grew by 13% with Treasury and Trade Solutions having its best quarter in a decade."The company's CET1 ratio grew to 13.5%, which is $14 billion above the current regulatory minimum after returning $1.5 billion to shareholders through common dividends and share repurchases.
Financial Highlights
The company's Institutional Clients Group reported a 12% increase in revenue, reaching $10.6 billion. Personal Banking and Wealth Management saw a 10% increase, reaching $6.8 billion. However, Legacy Franchises reported a 13% decrease in revenue, down to $2.2 billion. The company's total revenues, net of interest expense, increased by 4% to $20.1 billion. Net income of $3.5 billion increased 2% from the prior-year period. The increase in net income was primarily driven by the higher revenue, partially offset by higher expenses and higher cost of credit.
Shareholder Returns
Citigroup returned $1.5 billion to its shareholders in the form of dividends and share repurchases, with a payout ratio of 48%. The book value per share stands at $99.28, while the tangible book value per share is $86.90.
Future Outlook
CEO Jane Fraser concluded her commentary with a positive outlook, stating,
Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank. When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders."This suggests that Citigroup Inc (C, Financial) is actively working towards improving its operations and delivering value to its shareholders.
