Citigroup Q3 Net Income Declines

Citigroup Inc. (C) reported third quarter net income of $3.5 billion, which was down 25% from the prior-year period, primarily driven by higher cost of credit resulting from the loan growth in PBWM and higher operating expenses. Earnings per share was $1.63, decreased 24% from the prior-year period, reflecting the lower net income, partially offset by an approximate 4% decline in average shares outstanding.

The company noted that its third quarter results included Asia Consumer divestiture-related impacts of approximately $520 million in earnings before taxes, primarily driven by a gain on the sale of the Philippines consumer business. Excluding these divestiture-related impacts, earnings per share was $1.50, for the quarter. Analysts on average had expected the company to earn $1.42 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Citigroup revenues were $18.5 billion in the third quarter, up 6%. Excluding the gain on sale of the Philippines consumer business in the quarter and the loss on sale of the Australia consumer business in the prior year period, revenues were down 1%. Analysts on average had estimated $18.25 billion in revenue.

Citigroup's end-of-period loans were $646 billion at quarter end, down 3% from the prior-year period. End-of-period deposits were $1.3 trillion at quarter end, down 3% from the prior-year period.

Citi said it will be ending nearly all of the institutional banking services it offers in Russia by the end of the first quarter of 2023. Going forward, the company's only operations in Russia will be those necessary to fulfill its remaining legal and regulatory obligations. Currently, Citi does not expect the costs to be incurred in connection with this action to be material.

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