Citigroup reports better-than-expected revenue for the third quarter

Citigroup reported its third-quarter results on Friday morning, with solid growth in both institutional clients and personal banking fueling higher-than-expected revenue and earnings per share.

Here’s what the company announced compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: $1.63, or $1.52 when excluding the impact of divestitures, vs. expected $1.21.  At this time, it is unclear if analysts included that divestitures item in their estimates.
• Revenue: $20.14 billion, vs. expected $19.31 billion

Revenue and net income rose by 9% and 2%, respectively, year over year.

Citigroup’s institutional clients unit reported $10.6 billion in revenue, up 12% year over year and 2% from the second quarter. The bank said it was the best third quarter in the past decade for rates and currencies revenue.

Meanwhile, the personal banking and wealth management division generated $6.8 billion in revenue, up roughly 10% year over year and 6% from the second quarter.

“Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%,” CEO Jane Fraser said in a press release.

Despite the better-than-expected results, shares of the bank closed down 0.2% for the day. Citigroup’s stock is now down more than 8% for the year.

Among other banks that reported quarterly results on Friday morning, JPMorgan and Wells Fargo both showed stronger-than-expected revenue numbers in their third-quarter reports.

Citigroup reported $1.84 billion in total cost of credit at the end of the quarter, up slightly from $1.82 billion at the end of the second quarter and $1.37 billion a year ago. That metric includes a net build of $125 million in the allowance for credit losses during the third quarter. Analysts were expecting total cost of…