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Citigroup's Wealth Arm Produces Punchy Q3 Income Result

Editorial Staff

16 October 2024

The wealth arm of 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.