Citigroup (C), a global investment and financial services provider, announced its third-quarter financial results on Friday. The institution surprised analysts by reporting a 9% increase in revenue compared to the same period last year.
Citigroup’s third-quarter financial results exceed expectations
Jane Fraser Source: LinkedIn
Net income for the third quarter pinged the register at $3.5bn. Experts believe a soar in trading revenue, investment banking fees, and interest payments attributed to this positive performance. Jane Fraser, the group’s chief executive officer (CEO), said:
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. Markets was up 10%, driven by strength in Fixed Income. Banking activity played to our mix and grew 17%, bolstered by a rebound in debt issuance and some signs of life in the equity capital markets.
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At present, the bank is busy renovating its organisational structure in an attempt to align it with strategic changes. Citigroup indicated it would downsize management echelons from 13 to eight. This move has already resulted in a 15% reduction of functional roles on the top two levels and the elimination of 60 committees. The CEO added:
When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.
Analysts indicated the US banking sector is reaping the fruits of the Federal Reserve’s mission to squelch interest rates. This invariably leads to more loans, which, in turn, leads to more interest payments.
