Citigroup Reports Q3 Profit Drop Amid Revenue Growth and New Partnerships

In the third quarter of fiscal 2024, Citigroup Inc reported a 1% year-over-year revenue growth, reaching $20.32 billion, surpassing analyst expectations. The bank's net income fell by 9% to $3.24 billion, primarily due to declines in U.S. Personal Banking and other segments. Despite this, several areas showed positive growth, including a 16% increase in banking revenue driven by investment banking activities and an 8% rise in services revenue. Citigroup's operating expenses decreased by 2%, indicating improved cost management. The bank's total loans increased by 3% year-over-year, totaling $689 billion, while deposits also rose to approximately $1.3 trillion. Citigroup's CEO, Jane Fraser, highlighted new partnerships, including a collaboration with Mastercard for cross-border payments and a $25 billion private credit partnership with Apollo Global Management. These strategic moves are aimed at enhancing the bank's service offerings and expanding its market reach. Looking ahead, Citigroup maintained its adjusted revenue outlook for fiscal 2024 at $80-$81 billion, slightly below the consensus estimate. The recent reduction in the U.S. Federal Reserve's benchmark lending rate is expected to stimulate borrowing and lending activities, potentially benefiting the bank's performance in the coming quarters. Overall, while Citigroup faced challenges with net income declines, its revenue growth in key areas and strategic partnerships position it for future opportunities in a competitive banking landscape.