Michael Corbat, CEO, Citigroup, speaking at the World Economic Forum in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
Citigroup reported on Tuesday better-than-expected results for the third quarter, sending the stock up more than 1%, as the company’s credit costs from the pandemic stabilized.
Here’s how the banking giant’s results compared to Wall Street estimates:
- Earnings: $1.40 per share vs. 93 cents a share expected, according to Refinitiv.
- Revenue: $17.3 billion vs. $17.2 billion expected
“We continue to navigate the effects of the COVID-19 pandemic extremely well. Credit costs have stabilized; deposits continued to increase,” CEO Michael Corbat said in a statement.
Citigroup reported that net credit losses declined to $1.9 billion in the third quarter from $2.2 billion in previous three-month period. The company’s overall cost of credit also dropped to $2.26 billion from $7.9 billion on a quarter-over-quarter basis.
Citigroup, the third-biggest U.S. bank by assets, is in the midst of a major management change.
Last month, the bank announced that longtime CEO Michael Corbat would be replaced by his deputy Jane Fraser in February, marking the first big Wall Street bank to have a female CEO.
Corbat’s departure was hastened by a sagging share price and pressure from regulators, CNBC reported last month. Last week, the bank agreed to pay a $400 million penalty for failing to address “several longstanding deficiencies” in its risk controls.
Besides forcing it to improve its risk management, regulators can now reject acquisitions sought by the bank and push for changes to management or the board if necessary.
This story is developing. Please check back for updates.