Citigroup Inc on Thursday reported a 48% jump in third-quarter profit that comfortably beat market estimates, as the bank released loan loss reserves and reaped a windfall of fees from equity underwriting and investment banking advice.
Investment banking revenue at Citigroup increased 39% to $1.9 billion, helping offset a 16% decline in fixed-income revenue from a year earlier when there was unprecedented volatility in the markets.Net interest revenue declined 1% from a year earlier, but was 2% more than in the second quarter, suggesting an end to the downward trend that started when the pandemic began and the Federal Reserve cut interest rates to near zero and many borrowers paid down their loan balances.
Revenue from Citi-branded cards in North America declined 1% and revenue from cards issued for retailers fell 6%. Investors have been particularly concerned about Citigroup's expenses as the bank has not said how much money and time it will take to meet requirements of regulators and fix its systems. Fraser expects the increased spending to bolster what she has described as Citigroup's "transformation" into a more efficient and focused company that will earn returns closer to its peers.
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