Citigroup (NYSE:C) Issues Quarterly Earnings Results

Citigroup (NYSE:C) posted its quarterly earnings results on Tuesday. The company reported $2.85 EPS for the quarter, beating the consensus estimate of $2.66 by $0.19, Zacks reports. Citigroup had a return on equity of 10.57% and a net margin of 10.97%. The company had revenue of $23.84 billion during the quarter, compared to analysts’ expectations of $23.74 billion. During the same quarter in the previous year, the business earned $1.86 EPS. The firm’s revenue was up 7.9% on a year-over-year basis.

Here are the key takeaways from Citigroup’s conference call:

• Citi reported strong third-quarter results, with revenue up 8% year over year to $23.8 billion, net income up 17% to $5.2 billion, EPS of $2.85, and ROTCE of 11.5%. Management raised its full-year outlook to ROTCE above 11% and expects an efficiency ratio below 60%.
• Services revenue rose 15%, while wealth revenue increased 15% and attracted $38 billion in net new investment assets. Markets revenue grew 6%, including 14% growth in equities, and banking revenue increased 6% on strong equity capital markets activity.
• Citi returned more than $4 billion to shareholders in the quarter, including $3 billion in buybacks and a 12% increase in the quarterly dividend. The bank also reported a 12.8% CET1 ratio, about 120 basis points above its current regulatory minimum.
• U.S. Consumer Cards revenue was flat as partner payments and rewards investments reduced non-interest revenue by 62%, while the business recorded a $208 million reserve build. Citi also expects to recognize an approximately $9 billion Banamex-related CTA loss through the P&L in early 2027.
• Management expects normal fourth-quarter seasonality to reduce Markets revenue by roughly 20% sequentially, or potentially more after a strong year. Future capital returns and buybacks remain subject to pending Basel III, G-SIB, and stress-capital-rule changes.

Citigroup Price Performance

C opened at $122.53 on Thursday. Citigroup has a 52-week low of $95.00 and a 52-week high of $147.96. The company has a 50 day moving average of $133.16 and a two-hundred day moving average of $131.71. The company has a market cap of $208.99 billion, a P/E ratio of 11.95, a P/E/G ratio of 0.55 and a beta of 1.13. The company has a quick ratio of 0.99, a current ratio of 1.00 and a debt-to-equity ratio of 1.78.

Citigroup Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Monday, August 3rd were paid a dividend of $0.67 per share. This is an increase from Citigroup’s previous quarterly dividend of $0.60. This represents a $2.68 annualized dividend and a yield of 2.2%. The ex-dividend date was Monday, August 3rd. Citigroup’s payout ratio is presently 28.94%.

Citigroup News Roundup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Q3 earnings beat expectations. Citigroup reported $2.85 in earnings per share versus the $2.66 consensus, while revenue rose 7.9% year over year to approximately $23.85 billion. Net income increased 40% to $5.2 billion, supported by 15% growth in both Services and Wealth revenue. Citi Stock Falls Despite Earnings Beat: What Investors Need to Know
• Positive Sentiment: Management raised its profitability outlook and increased shareholder returns. Citi cited strong Services growth, AI-related efficiencies and disciplined capital deployment, while also raising its dividend and expanding buybacks. The bank returned about $4.1 billion to shareholders during the quarter. Citigroup Q3 Earnings Call Highlights Higher Return Outlook and AI Gains
• Positive Sentiment: Banamex separation and a potential IPO could unlock value. Citigroup is reportedly preparing to fully spin off its former Mexican consumer-banking business, with an initial public offering targeted for early 2027. Completing the separation could simplify Citi’s portfolio and provide proceeds or a valuation reference for the asset. Banamex Leadership Pitches Turnaround Ahead of Targeted Citi IPO
• Neutral Sentiment: Citi expects a 25-basis-point Federal Reserve rate increase in December. Higher rates could support net interest income, but Citi also expects rates to remain elevated until at least mid-2027, increasing pressure on borrowers and the broader economy. Global Market: Citi Expects Fed to Raise Rates
• Negative Sentiment: Investors questioned the durability of the beat. Trading and investment-banking activity softened sequentially, management warned that fourth-quarter trading revenue could decline, credit-loss provisions increased and analysts cut price targets. Elevated put-option activity and concerns about weaker capital ratios added to the cautious tone. Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. HSBC started coverage on shares of Citigroup in a research report on Monday, September 28th. They issued a “buy” rating and a $164.00 target price on the stock. Royal Bank Of Canada dropped their price target on shares of Citigroup from $150.00 to $135.00 and set an “outperform” rating for the company in a research report on Wednesday. UBS Group set a $148.00 price target on shares of Citigroup in a research note on Wednesday. Morgan Stanley increased their price target on shares of Citigroup from $154.00 to $164.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Finally, Truist Financial decreased their price target on shares of Citigroup from $158.00 to $154.00 and set a “buy” rating on the stock in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Citigroup presently has an average rating of “Moderate Buy” and an average target price of $150.79.

About Citigroup

Citigroup Inc is a global financial services company headquartered in New York City and listed on the New York Stock Exchange under the symbol C. Through its subsidiaries and businesses, Citi provides banking, lending, investment, payments, wealth management and other financial services to consumers, businesses, governments and institutional clients.

Citi’s principal businesses include Services, which supports institutional clients with treasury, trade, securities services and related solutions; Markets, which provides sales, trading, research and financing services; Banking, which offers investment banking and corporate banking; and Wealth, which provides private banking and wealth management.