Citigroup Inc (NYSE:C) stock fell 1.24% (As on October 15, 11:19:38 AM UTC-4, Source: Google Finance) after the company posted a smaller-than-expected drop in profit for the third quarter thanks to gains in investment banking, particularly in debt underwriting. The company has reported net income for the third quarter 2024 of $3.2 billion compared to net income of $3.5 billion for the third quarter 2023. Excluding divestiture-related impacts , primarily consisting of an approximately $400 million gain from the sale of the Taiwan consumer banking business in the prioryear period, revenues were up 3%. This increase in revenues was driven by growth across all businesses, partially offset by a decline in All Other.

Moreover, Citigroup cost of credit was approximately $2.7 billion in the third quarter 2024, compared to $1.8 billion in the prior-year period, largely driven by higher cards net credit losses and a higher allowance for credit losses (ACL) build for portfolio growth and mix. Citigroup’s total allowance for credit losses was approximately $22.1 billion at quarter end, compared to $20.2 billion at the end of the prior-year period. Total ACL on loans was approximately $18.4 billion at quarter end, compared to $17.6 billion at the end of the prior-year period, with a reserve-to-funded loans ratio of 2.70%, compared to 2.68% at the end of the prior-year period. Citigroup’s end-of-period loans were $689 billion at quarter end, up 3% versus the prior-year period, largely reflecting growth in cards in USPB and higher loans in Markets and Services. Citigroup’s end-of-period deposits were approximately $1.3 trillion at quarter end, up 3% versus the prior-year period, largely due to an increase in Services, driven by the continued deepening of client relationships and operating deposit growth in both Treasury and Trade Solutions and Securities Services. Citigroup’s book value per share of $101.91 at quarter end increased 3% versus the prior-year period, and tangible book value per share of $89.67 at quarter end increased 3% versus the prior-year period.

C in the third quarter of FY 24 has reported the adjusted earnings per share of $1.51, beating the analysts’ estimates for the adjusted earnings per share of $1.31, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 1 percent to $20.315 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $19.8 billion.