On October 15, 2024, Citigroup conducted its third-quarter earnings call for the period ending September 30, 2024. The call was led by Jenn Landis, Head of Investor Relations, and featured insights from CEO Jane Fraser and CFO Mark Mason.
Jenn Landis commenced the call by reminding participants that the presentation might include forward-looking statements based on management’s expectations. These statements are susceptible to changes and uncertainties that could result in material differences from actual results. Following this, Landis introduced Jane Fraser.
CEO Jane Fraser highlighted the progress Citigroup has made during this quarter, marking it as a pivotal year. She pointed out the revenue growth and positive operating leverage across all businesses, achieved despite a global backdrop of slower growth and modest regional challenges. Citigroup reported a net income of $3.2 billion and an earnings per share of $1.51, reflecting a 3% revenue growth when excluding divestitures.
In terms of individual business performance, Services registered an 8% increase in revenues due to significant fee growth and was further buoyed by loan and deposit volume growth. Markets business saw a slight rise in revenues, driven by a strong performance in equities, although fixed income lagged. Banking demonstrated a 16% growth in revenues, fueled by a 31% increase in investment banking activities. Wealth revenues grew 9%, attributed to a 24% increase in client investment assets.
The U.S. Personal Banking sector saw a 3% increase in revenues, with branded cards leading the growth. Retail services faced some challenges due to lower discretionary spending affecting the overall portfolio.
Mark Mason elaborated on Citigroup’s financials, reporting a net income of approximately $3.2 billion and revenues totaling $20.3 billion for the quarter. Year-over-year, total revenues grew by 1%, with expenses decreasing by 2%, driven by organizational simplification and cost reductions. The cost of credit was largely influenced by net credit losses in the card segment and allowance for credit loss (ACL) builds due to portfolio growth.
Mason highlighted initiatives aimed at streamlining operations, such as retiring over 450 applications and upgrading ATM software, which are expected to enhance operational efficiency and security. He reiterated Citigroup’s commitment to its expense targets, with a focus on continuous investment in risk and control initiatives. Mason also addressed the U.S. Personal Banking segment’s path to higher returns, emphasizing product innovation and credit environment normalization as key factors.
During the question-and-answer session, queries centered around the trajectory of card losses, the partnership with Apollo, capital optimization, and Citigroup’s progress on regulatory targets, including data quality management—a crucial area within Citigroup’s transformation strategy. Fraser and Mason expressed confidence in Citigroup’s strategic direction and commitment to achieving medium-term financial targets.
This earnings call underscored Citigroup’s ongoing transformation efforts and its focus on driving sustainable growth across its diverse financial services portfolio in an evolving global economic environment.
