Citigroup Inc (NYSE:C) stock rose 1.32% (As on October 14, 11:30:07 AM UTC-4, Source: Google Finance) after the company beat estimates for third-quarter profit, which rose as all of its divisions brought in record revenue, despite booking a loss from selling a stake in its Mexico unit. Citibank, like its competitors, benefited from a deals rebound as companies struck megadeals, despite uncertainty over U.S. President Donald Trump’s tariff policies. The banking division had the highest revenue growth among the units, 34% from a year earlier. The surging profits came despite Citi booking a $726 million loss from the sale of a 25% stake in its Mexican subsidiary Banamex. Markets revenue rose 15% to $5.6 billion in the quarter, helped by a strong performance in equities and fixed income. A rate cut in September and hopes of further easing this year could help banks by spurring economic activity and demand from borrowers.

Moreover, Delinquent corporate loans more than doubled in the quarter compared to a year earlier, to $2.1 billion. Mason said the higher non-accrual loans were related to two downgrades of clients in its corporate portfolio. Citi’s return on tangible common equity, a measure of how well it uses its capital to earn profit, was 8% in the quarter and 8.6% so far this year. Excluding the one-off loss in the quarter, ROTCE was 9.7%, closer to the target set by Fraser of 10% to 11% for next year. Citi announced last month it would sell a 25% stake in its retail unit Banamex to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR (ASURB.MX), opens new tab, for around $2.3 billion. The bank plans to list the Mexico business to divest from the rest of the stake and rejected last week an unsolicited offer by Mexican mining and transport conglomerate Grupo Mexico.

C in the third quarter of FY25 has reported the adjusted earnings per share of $2.24, beating the analysts’ estimates for the adjusted earnings per share of $1.90, according to LSEG. The company had reported the adjusted revenue growth of 9 percent to $22.1 billion in the third quarter of FY25, driven by growth in each of Citi’s five interconnected businesses and Legacy Franchises in All Other, partially offset by a decline in Corporate/Other, also in All Other. Services posted its best quarter ever with revenues up 7%. Net income was $3.8 billion, compared to $3.2 billion in the prior-year period, driven by the higher revenues and a lower cost of credit, largely offset by higher expenses. Citigroup cost of credit was $2.5 billion, reflecting $2.2 billion of net credit losses and a net allowance for credit losses (ACL) build of $236 million driven by higher volume, changes in portfolio composition and transfer risk associated with client activity in Russia, partially offset by changes in the macroeconomic outlook.