Summary
Citigroup Inc. reported a 25% year-over-year decrease in net income for the third quarter of 2022, primarily driven by higher provisions for credit losses and increased operating expenses. Despite a 6% increase in reported revenue, which was bolstered by a gain from the sale of its Philippines consumer business, underlying revenues (excluding divestiture impacts) decreased by 1% due to lower non-interest revenues in Institutional Clients Group (ICG) and Global Wealth Management. Operating expenses rose 8%, mainly due to significant investments in transformation initiatives, risk and controls, and business-led growth. The cost of credit saw a substantial shift from a net release in the prior year to a net build, reflecting loan growth in Personal Banking and Wealth Management (PBWM) and a deteriorating macroeconomic outlook impacting the corporate portfolio. The company continued to make progress on its consumer banking divestitures, completing the sale of its Philippines consumer business and announcing the sale of its Thailand and Malaysia businesses. Citigroup's Common Equity Tier 1 (CET1) capital ratio improved to 12.3%, exceeding regulatory requirements and allowing for a $1.0 billion return of capital to shareholders via dividends, though common share repurchases remain paused as the company builds capital amidst macroeconomic uncertainty.
Financial Highlights
39 data points| Revenue | $18.51B |
| Operating Income | $12.56B |
| Interest Expense | $7.36B |
| Net Income | $3.48B |
| EPS (Basic) | $1.64 |
| EPS (Diluted) | $1.63 |
| Shares Outstanding (Basic) | 1.94B |
| Shares Outstanding (Diluted) | 1.96B |
Key Highlights
- 1Net income decreased 25% year-over-year to $3.5 billion, or $1.63 per share, primarily due to higher cost of credit and operating expenses.
- 2Total revenues increased 6% to $18.5 billion, boosted by a gain on the sale of the Philippines consumer business. Excluding divestiture impacts, revenues decreased 1%.
- 3Operating expenses increased 8% to $12.7 billion, driven by transformation and business investments, partially offset by productivity savings.
- 4Cost of credit rose significantly to $1.4 billion, reflecting a build in the allowance for credit losses compared to a release in the prior year.
- 5Common Equity Tier 1 (CET1) capital ratio improved to 12.3%, demonstrating capital strength.
- 6Returned $1.0 billion to common shareholders through dividends.
- 7Continued progress on strategic divestitures, with key sales in Asia completed or announced.