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Citigroup posts strong profit amid thriving dealmaking

By Shubhangi on Oct 15, 2021 | 04:35 AM IST

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Citi’s investment banking revenue rose 39% to $1.9 billion in the quarter.

The investment banking fees rose to an all-time record in the first nine months of the year.

Citigroup Inc reported strong quarterly profit on Thursday along with other banks on account of surge in dealmaking in the U.S.

As the stock market is booming, companies have raised big amounts in debt and equity, and used large chunk of it for deals taking the help of investment banks.

The investment banking fees rose to an all-time record in the first nine months of the year amid increase in dealmaking profiting banks like Citi, JPMorgan Chase and Morgan Stanley.

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"It was Citi's best M&A quarter and the second best investment banking quarter in a decade," Chief Executive Jane Fraser said on a post-earnings conference call with analysts.

Citi’s investment banking revenue rose 39% to $1.9 billion in the quarter.

Lending business of bank

Though the bank reported growth in banking revenue, it was unable to show progress in the lending business in the quarter, despite the rise in consumer spending.

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"Healthy consumer balance sheets and persistently elevated payment rates did mean that loan growth remained under pressure," CEO Fraser said.

The net interest revenue, though, declined 1% from a year earlier but was 2% more than the second quarter.

Income and expenditure

Net income of the bank soared 48% to $4.6 billion, or $2.15 per share, from a year earlier for the quarter ended September 30.

According to Refinitiv data, analysts were expecting a profit of $1.65 per share.

As the bank spent more on technology, the operating expenses increased 5% to $11.5 billion.

Picture Credits: Reuters

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