Citigroup Q3 income beats consensus, helped by divestiture (NYSE:C)

Citigroup (NYSE:C) posted better-than anticipated earnings on Friday, however income, whereas beating Wall Road consensus, solely rose Y/Y as a result of restructuring strikes.

Q3 adjusted EPS of $1.50, vs. consensus estimate of $1.45, fell from $2.19 in Q2 and from $2.15 in Q3 2021.

Together with about $256M of positive factors from its Asia Shopper divestiture, primarily a acquire on the sale of its Philippines enterprise, Q3 2022 GAAP EPS was $1.63.

“Treasury and Commerce Options noticed revenues up 40% year-over-year, with progress throughout all segments, and Securities Providers was up 15%,” mentioned CEO Jane Fraser. “In Mounted Earnings, we matched final 12 months’s displaying by way of our energy in FX, whereas Equities got here in decrease than final 12 months. Banking was the enterprise most adversely impacted by the macro atmosphere with diminished deal flows and a decrease urge for food for M&A.”

Income of $18.5B, topping the $18.3B common analyst estimate, fell 6% from Q2 and rose 6% Y/Y. The Y/Y improve was primarily from the acquire on the sale of its Philippines shopper enterprise in contrast a loss on the sale of its Australia shopper enterprise within the year-ago interval.

Fraser additionally reiterated the corporate’s plans to exit Russia. She mentioned it should finish almost all institutional banking companies subsequent quarter.

Q3 working bills have been $12.7B, -6% Q/Q and +6% Y/Y.

Q3 web credit score losses of $887M vs. $850M in Q2 and $961M within the year-ago quarter. Internet allowance credit score construct of $370M compares with $375M within the prior quarter and a launch of $1.16B within the year-ago quarter. Complete value of credit score was $1.37B in Q3 vs. $1.27B in Q2 and advantage of $192M in Q3 2021.

Institutional Purchasers Group income of $9.47B, down 17% Q/Q and 5% Y/Y.

Private Banking and Wealth Administration income of $6.19B elevated 3% Q/Q and 6% Y/Y.

Legacy Franchises income of $2.55B rose 32% Q/Q and 66% Y/Y.

Earlier, Citigroup (C) non-GAAP EPS of $1.50 beats by $0.05, income of $18.51B beats by $230M