Citigroup posted stronger-than-expected third-quarter results on Tuesday, with all its business divisions generating record revenue.
The results highlight the US banking giant’s growing strength across lending, trading, and investment banking as corporate dealmaking accelerates and consumer activity remains robust.
Citigroup’s shares rose 0.23% on Tuesday’s opening.
Profit rises on broad-based revenue growth
For the third quarter, Citigroup reported a 16% rise in net income to $3.8 billion from a year earlier, while earnings per share climbed 23% to $1.86.
Revenue increased 9% year-on-year to $22.09 billion, surpassing analyst expectations of $21.09 billion, according to data compiled by LSEG.
Every division of the bank contributed to the record performance.
The services business recorded its best quarter ever, with revenue up 7%, while banking revenues surged 34%.
Citi’s markets segment also reported its strongest third-quarter performance, with a 15% rise in revenue.
CEO Jane Fraser credited the results to continued strategic execution and technological innovation.
“Investments in new products, digital assets, and AI are driving innovation and improved capabilities across the franchise,” Fraser said.
“The relentless execution of our strategy is delivering stronger business performance quarter after quarter and improving our returns.”
Despite the strong numbers, Citi’s expenses rose 9% in the quarter, primarily due to costs tied to the partial sale of its Mexico business, Banamex.
The bank reported a $726 million goodwill impairment associated with the deal.
Banamex sale and Latin America strategy
Citigroup is in the process of selling a 25% stake in its Mexican retail unit, Banamex, to billionaire Fernando Chico Pardo, chairman of airport operator ASUR, for approximately $2.3 billion.
The move is part of Fraser’s ongoing effort to streamline Citi’s global operations by exiting non-core overseas businesses.
The bank acquired Banamex in 2001 for $12.5 billion but decided to divest the unit as part of a broader restructuring strategy.
While Citi had initially planned to hold a public offering for the remaining stake, an unsolicited $9.3 billion offer from Grupo Mexico in 2025 was ultimately rejected.
The sale underscores the challenges Citi faces in reshaping its international footprint while maintaining profitability in key markets.
The transaction’s associated costs weighed on quarterly earnings, though the bank’s underlying performance remained strong across divisions.
Investment banking and markets strength
Citigroup benefited from a resurgence in global dealmaking during the third quarter as companies sought to capitalize on record stock market valuations and optimism over potential US interest rate cuts.
Banking revenue jumped 31.3% to $2.1 billion, marking the largest gain among the bank’s five divisions.
Global mergers and acquisitions activity surged to $1.26 trillion in the quarter, up 40% from the prior year, according to industry data.
Citi’s markets business also delivered robust results, with trading revenue rising 16.7% to $5.6 billion, driven by strong fixed-income performance.
The bank’s wealth management unit — a key growth area — saw revenue increase 10%, supported by gains across its Citigold and private banking segments.
Revenue in its services division rose 8%.
Outlook and performance goals
Citigroup’s return on tangible common equity stood at 8% for the quarter and 8.6% year-to-date — still below the 10% to 11% target set by Fraser for next year.
Nonetheless, the bank’s share price has gained 35% in 2025.
Citi’s strong quarterly results, supported by record revenue across all divisions and steady progress in strategic realignment, suggest continued momentum even as the bank manages the complexities of its Banamex divestiture and global restructuring efforts.
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