C posts Q3 EPS of $1.52, handily beating estimates for $1.23 -
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Citigroup beats by $0.29, beats on revs; reaffirms FY23 revenue guidance (41.53)
Reports Q3 (Sep) adjusted earnings of $1.52 per share, $0.29 better than the FactSet Consensus of $1.23; revenues rose 8.8% year/year to $20.14 bln vs the $19.27 bln FactSet Consensus.
Co issues reaffirms guidance for FY23, sees FY23 revs of $78-79 bln vs. $78.98 bln FactSet Consensus.
Third quarter results included divestiture-related impacts of $299 million(5) in earnings before taxes ($214 million after-tax), primarily driven by a gain on the sale of the Taiwan consumer business, recorded in Legacy Franchises. Excluding these divestiture-related impacts, earnings per share was $1.52 . This compares to divestiture-related impacts in the third quarter 2022 of $519 million(5) in earnings before taxes ($256 million after-tax), also recorded in Legacy Franchises, and earnings per share of $1.50, excluding divestiture-related impacts. Citi CEO Jane Fraser said, Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%. Services, our fastest growing business, grew by 13% with Treasury and Trade Solutions having its best quarter in a decade. Markets was up 10% driven by strength in Fixed Income. Banking activity played to our mix and grew 17%, bolstered by a rebound in debt issuance and some signs of life in the equity capital markets.
U.S. Personal Banking also had double-digit revenue growth while a continued deceleration in spending indicates an increasingly cautious consumer. And Wealth revenues grew as the business continues to win new mandates and acquire new clients.
Full year 2023 net interest income, excluding Markets: Increasing from ~$46+ billion to $47.5+ billion. Full year 2023 expenses: ~$54 billion, excluding 2023 divestiture-related impacts( and FDIC special assessment. Citigroup total allowance for credit losses on loans was approximately $17.6 billion at quarter end, compared to $16.3 billion at the end of the prior-year period, with a reserve-to-funded loans ratio of 2.68%, compared to 2.54% at the end of the prior-year period. Total non-accrual loans increased 14% from the prior-year period to $3.3 billion. Corporate non-accrual loans increased 33% to $2.0 billion. Consumer non-accrual loans decreased (7)% to $1.3 billion.
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