NEW YORK: Citigroup Inc, the fourth-biggest US bank by assets, reported a 10.5 percent drop in quarterly profit, but beat analysts’ expectations as revenue from investment banking and fixed-income trading rose.
The bank’s net income fell to $3.84 billion, or $1.24 per share, in the third quarter ended Sept. 30 from $4.29 billion, or $1.35 per share, a year earlier.
Total adjusted revenue fell 4 percent to $17.76 billion.
Analysts on average had estimated earnings of $1.16 per share and revenue of $17.36 billion, according to Thomson Reuters I/B/E/S.
Citigroup’s shares rose 1.8 percent to $49.32 in premarket trading.
Revenue from investment banking rose 15 percent to $1.09 billion, while revenue from fixed-income trading was up 35 percent at $3.47 billion.
However, equity markets revenue fell about 34 percent due to lower market activity.
In the year-earlier quarter, the bank recorded a gain of $180 million on the sale of a business in Mexico and a $140 million valuation adjustment in its equity markets division.
Citigroup, the most international of the large US banks, has been exiting less-profitable operations in markets around the world, consolidating back offices and cutting jobs to become leaner.
Adjusted revenue from Citicorp, the bank’s core business, rose 0.6 percent to $16.88 billion, while expenses rose 3 percent to $9.58 billion.
Earlier, Wells Fargo & Co. reported a 3.7 percent fall in quarterly profit.
Citigroup said operating expenses fell 2.5 percent to $10.40 billion.
“In the quarter, both our Global Consumer Bank and Institutional Clients group had solid year-over-year revenue increases in nearly every business line and geography,” CEO Michael Corbat said in a statement.
The lender said its return on tangible common equity, a key measure of profitability, fell to 7.8 percent from 8.9 percent a year earlier.
Corbat set a target of reaching a 10 percent return on equity by 2015 shortly after taking the helm in 2012.
But the bank has found it hard to hit the target as its earnings are squeezed by low interest rates and the US Federal Reserve’s requirement that banks retain more capital. The lender said revenue from its North American branded card business rose 15 percent to $2.2 billion, reflecting the addition of the Costco portfolio as well as modest organic growth driven by higher volumes.
The business accounts for about a quarter of its total net income and a third of profit from its global consumer franchises.
Citigroup executives have said the branded card business is expected to generate a 2.3 percent return on assets, more than double the profitability of the entire company.
The bank’s common equity Tier 1 capital rose to 12.6 percent from 12.5 percent in the second quarter even as Citigroup returned capital to shareholders through dividends and share buybacks.
The stock had lost 6.3 percent this year as of Thursday’s closing price of $48.47.
Citigroup’s stock has languished at a steep discount to its tangible book value, which was $64.71 at the end of September.
Citigroup profit falls 10.5%, but beats expectations
Citigroup profit falls 10.5%, but beats expectations
Manufacturing and trade drive 5% rise in Saudi operating revenue
RIYADH: Saudi Arabia’s Operating Revenue Index rose 5 percent year on year in November, supported by growth in manufacturing, trade and construction, official data showed.
In its latest report, the General Authority for Statistics noted that the rise was “supported by an increase in manufacturing activities by 6.5 percent,” while wholesale and retail trade, including the repair of motor vehicles, increased by 9.5 percent.
Construction activity expanded 7.4 percent, while financial activities grew 14.4 percent and insurance activities rose 8.6 percent.
The data underline the Kingdom’s broader economic diversification drive under Vision 2030, with non-oil activities such as manufacturing, construction, finance and trade continuing to expand and contribute a larger share to overall economic activity.
On a monthly basis, the index fell 1.2 percent from October, according to the preliminary figures released by GASTAT, pointing to uneven momentum across sectors at the end of the year.
The fall was attributed to weaker performance in some sectors, including a 3.8 percent decrease in mining and quarrying activities and a 25.8 percent drop in electricity, gas, steam and air conditioning supply activities.
In the labor market, the Employees Compensation Index recorded strong annual growth, rising 13.6 percent compared to November 2024. The increase was supported by an 18.8 percent rise in manufacturing activities and a 10.5 percent increase in wholesale and retail trade activities.
On a monthly basis, employee compensation edged up 0.1 percent, reflecting modest gains across several sectors.
Indicators linked to construction activity also strengthened. The number of issued building permits increased 28.4 percent year on year in November 2025, reaching 8,034, compared to 6,258 in the same month a year earlier.
The surge in building permits indicates robust investment in physical infrastructure, a key pillar of Saudi Vision 2030, while rising wages support its aim of improving citizen prosperity.
The report stated this was “a result of the increase in the number of issued building permits during November.” Furthermore, permits showed strong momentum from the previous month, increasing by 7.7 percent compared to October 2025.
