Citi Reports 25 Percent Net Reduction in Income

Citigroup, owner of bank Citibanamex, saw its net income contract in 3Q22 following its restructuring process. In January 2022,  Citigroup announced it will leave its commercial banking operations in Mexico. 

Citigroup registered a net income oscillating at US$3.5 billion, which represents a 25 percent decrease in comparison to 3Q21, when it registered US$4.6 billion. The company registered US$1.63 per diluted share on revenues of US$18.5 billion. In 3Q21, Citi registered revenues of US$17.4 billion on US$2.15 per diluted share. 

Citi highlighted Asia Consumer divestiture-related impacts as one of the primary factors in its 3Q22 results, with effects derived from US$520 million in earnings before taxes and a $256 million after-tax gain on its sale of the Philippines consumer business. Earnings per share stood at US$1.50 with the exclusion of said event. Revenues increased due to the sale of the Philippines consumer business, but a loss on the sale of Australia’s consumer business opaqued the operation. 

“We have made good progress on many of the core business drivers we laid out at Investor Day, despite the complex macro environment. Treasury and Trade Solutions saw revenues up 40 percent year-over-year, with growth across all segments, and Securities Services was up 15 percent. In Fixed Income, we matched last year’s showing through our strength in FX, while Equities came in lower than last year. Banking was the business most adversely impacted by the macro environment with reduced deal flows and a lower appetite for M&A. While the backdrop for wealth management was difficult, our revenues were up outside of Asia,” said Jane Fraser, CEO, Citi, via a company’s press release. 

Citi’s revenues fell 1 percent, with an offset of in net interest income due to lower non-interest revenues. Higher net interest income was propelled by a global impact on interest rates across businesses and a strong loan increase in the Personal Banking and Wealth Management (PBWM) segment. “This was more than offset by lower non-interest revenues reflecting declines in Investment Banking and Markets in Institutional Clients Group (ICG) and investment product revenues in Global Wealth Management in PBWM,” reads Citi’s press release.