Citigroup Stock Surges After Q3 Performance With 9% Revenue Boost and Earnings Uptick

Citigroup Inc C reported a third-quarter FY23 net revenue growth of 9% year-over-year to $20.14 billion, beating the consensus of $19.32 billion. EPS of $1.63 beat the consensus of $1.21.

Revenue increased by 10%Y/Y, and EPS was $1.52, excluding the divestiture-related impacts. 

Institutional Clients Group revenue increased by 12% Y/Y to $10.64 billion, with Services +13% Y/Y and Markets +10% Y/Y.

Personal Banking and Wealth Management revenue increased by 10% Y/Y to $6.78 billion, with US Personal Banking at +13% Y/Y and Global Wealth Management at +2% Y/Y.

Legacy Franchises' revenues decreased 13% Y/Y to $2.22 billion, driven by a one-time gain in the Asia consumer businesses and reductions from closed exits and wind-downs.

Net income for the quarter was $3.55 billion, up 2% Y/Y. Operating expenses stood at $13.51 billion, an increase of 6% Y/Y.

Total allowance for credit losses on loans was $17.6 billion, with a reserve-to-funded loans ratio of 2.68%, compared to $16.3 billion, or 2.54% of funded loans in 3Q22.

Citigroup's end-of-period loans were $666 billion at quarter end, up 3% Y/Y, mainly reflecting growth in US Personal Banking. Deposits were ~$1.3 trillion at quarter end, down 3% from the prior year, primarily due to a reduction in Services, reflecting quantitative tightening.

Citigroup's book value per share is $99.28 (+7% Y/Y), and tangible book value is $86.90 (+8% Y/Y) at quarter end.

Outlook: Citigroup reiterated FY23 adjusted revenue of $78 billion - $79 billion vs. consensus $79 billion.

Price Action: C shares are trading higher by 2.72% at $42.60 premarket on the last check Friday.