Citi profit jumps 40% with higher investment banking, services and wealth revenue
Profit increased to US$5.25 billion, or US$2.85 per share, in the three months ended Sep 30
Citi's third-quarter profit surged 40%, reaching US$5.25 billion or US$2.85 per share, as investment banking, services and wealth management segments delivered strong results. Investment banking revenue grew 9% year-over-year to US$1.35 billion, while wealth management and services revenue increased by 15% each. However, trading profits only rose 2% and Equity trading revenue dropped 19% compared to the second quarter.
The worldwide bank cited rising oil prices due to the Iran conflict, inflation concerns, and Federal Reserve's rate hikes as factors impacting trading revenue. CEO Jane Fraser anticipates surpassing the year's return target of 11%, aiming for 14-15% sustainable returns. Citigroup's shares soared 13% this year, leading the broader bank stock index.
The bank returned US$4.1 billion to shareholders through buybacks and dividends in the quarter and has repurchased shares totaling US$13.3 billion so far in 2022.
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