Citigroup Inc (NYSE:C) released the earnings results from its third quarter before opening bell this morning, posting earnings of $1.15 per share, excluding CVA / DVA, on $20 billion in revenue, excluding CVA / DVA. Analysts had been expecting earnings of $1.12 per share on $19.04 billion in revenue.
Reported earnings were $1.07 per share, while net income was $3.4 billion or $3.7 billion excluding CVA / DVA. Revenue including CVA / DVA was $19.6 billion for the third quarter.
Clint Carlson's hedge fund, Carlson Capital's Double Black Diamond strategy, gained 1.04% net of fees in the month of September. Following this performance, the fund has returned 9.87% net of fees for the year to the end of the month. Q3 2021 hedge fund letters, conferences and more The Double Black Diamond strategy makes up Read More
Key metrics in Citigroup’s report
Citigroup saw its net interest margin rise to 2.91%. The bank’s net credit losses fell 14% year over year to $2.1 billion. The firm used about $700 million in deferred tax assets and recorded a Basel III Tier 1 common ratio of 10.7%. Citigroup estimates its Basel III supplementary leverage ratio to be 6%.
The bank’s book value per share rose to $67.31, while its tangible book value per share climbed to $57.73. Citi Holdings saw its assets decline 16% year over year to $103 billion. Those assets made up 5% of all of Citigroup’s assets at the end of the quarter.
CVA / DVA was -$371 million or -$228 million after tax. That includes a pretax charge of $474 million in connection with the firm’s implementation of funding valuation adjustments. That compares to -$336 million or -$208 million after tax in the same quarter a year ago.
Breaking down Citigroup’s earnings report
Citigroup reported Citicorp revenues of $18 billion. The firm’s global consumer banking unit recorded $9.6 billion in revenue due to growth in Latin America, North America and Asia.
Institutional clients group revenue rose 14% to $8.4 billion, while Citi Holdings revenues climbed 26% to $1.6 billion.
Citigroup announces strategic plans
This morning Citigroup also said it plans to exit the consumer business in 11 markets, leaving a consumer banking footprint of almost 57 million clients in 24 markets. Those clients made up more than 95% of global consumer banking’s current revenue base and simplifies the firm’s operations.
Citigroup will shut down its consumer business in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru. The bank will also close its consumer finance business in Korea.