NEW YORK: Citigroup says profit fell 34% in the third quarter due to weakness in its consumer banking division.
The New York-based bank said Tuesday that third-quarter net income fell to $3.23 billion from $4.91 billion in the year ago quarter.
Per share earnings for the latest quarter were $1.40. That result topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.
Citigroup posted revenue of $20.12 billion in the period. Its revenue net of interest expense was $17.3 billion, slightly better than Wall Street forecasts although down 7% from a year ago. Six analysts surveyed by Zacks expected $17.26 billion.
The bank did set aside less money for potential bad loans in the latest quarter compared to earlier in the year, a sign that some of the economic strain from the coronavirus pandemic could be easing. Citigroup’s provision for credit losses was $2.26 billion in the third quarter compared to $7.9 billion in the second quarter.
Citigroup shares have fallen 43% since the beginning of the year, while the Standard & Poors 500 index has climbed slightly more than 9%. The stock has decreased 33% in the last 12 months. Shares rose 2% in premarket trading Tuesday.
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