Financial Results
Citigroup's Wealth Arm Produces Punchy Q3 Income Result
![Citigroup's Wealth Arm Produces Punchy Q3 Income Result](https://wealthbriefing.com/cms/images/app/Banks%2C%20wealth%20managers/Citigroupgraphic.jpg)
The division containing a variety of business lines such as private banking and the Citigold business generated a strong net income gain in the third quarter.
The wealth arm of Citigroup more than doubled
its net income to $283 million in the third quarter of 2024
from a year ago ($132 million), with gains in the Citigold
mass-affluent segment helping to produce the result. Private bank
total revenue dipped to £614 million from $617 million.
The Citigold revenue rose 13 per cent year-on-year to $1.144
billion.
Total operating expenses in the wealth business of the US banking
group dropped by 4 per cent; net credit losses fell 23 per cent
year-on-year to $27 million, the bank said in a statement
yesterday.
Across all divisions of the bank, net income fell 9 per cent in
Q3 2024 from a year before to $3.238 billion; total revenues, net
of interest costs, rose 1 per cent; total operating costs fell 2
per cent. Total cost of credit surged by 45 per cent. This was
caused mainly by higher cards' net credit losses and a higher
allowances for credit losses.
Discussing the private banking results, Citigroup said that
higher investment fee revenues and improved deposit spreads were
offset by higher mortgage funding costs, leaving the revenue
result largely unchanged. The bank said the fall in wealth
operating costs was mainly caused by the benefits of prior
repositioning and restructuring actions. (In the past few years,
Citigroup has sold off more than a dozen countries’ retail bank
operations and moved towards areas including wealth management.
“We are also starting to see the positive impact of the changes
we’ve implemented in our wealth business, with revenues up 9 per
cent, including strong growth in client investment assets and
investment fee revenue. US Personal Banking revenues were up 3
per cent with brandedcCards growing by 8 per cent with account
acquisitions, spend and payment rates driving higher
interest-earning balances,” Jane Fraser, CEO, said.
Shares in the bank were down more than 1 per cent after markets
opened, although they were marked up ahead of the opening to
share trading in the US, reports said.