Citigroup Inc (NYSE:C) saw its stock move higher in Friday’s early deals, up 2.5% to US$44.05, as quarterly financial results were welcomed as ‘better than feared’, and, the bank set aside more funds to cover for problem loans amidst the economic downturn.
Whilst covering the loan book was evidently a feature of the results, Citi’s investment banking operations were meanwhile hit by volatility, uncertainty and rising borrowing costs which have all stymied dealmaking activity in the capital markets.
The American bank reported a net profit of US$3.5bn (US$1.63 per share) for the quarter ended 30 September, versus some US$4.6bn (US$2.15 per share) for the same period a year ago.
“We have made good progress on many of the core business drivers we laid out at Investor Day, despite the complex macro environment,” said chief executive Jane Fraser.
Citi set aside an additional US$370mln to its loan-loss reserve, and, saw its total credit costs rise to UYS$1.36bn in the quarter – marking its highest level for two years.
Investment banking revenues slumped by 64%, to US$631mln in a challenging trading environment.
Elsewhere, banking rivals JP Morgan similarly reported a better-than-feared third quarter, with profit down 17% to US$9.74bn, or US$3.12 per share.