Citigroup (NYSE:C)'s third-quarter results for 2023 exceeded estimates, with a year-on-year revenue increase of 8.8% to $20.14 billion and an earnings per share (EPS) of $1.52, according to figures released on Friday. These results outperformed the Zacks Consensus Estimates, with a positive surprise of 4.22% in revenue and 20.63% in EPS.
Key financial metrics presented include a Net Interest Margin of 2.5%, an Efficiency Ratio of 67.1%, a Leverage Ratio of 6%, and total interest-earning assets amounting to $2,206.17 billion. According to InvestingPro data, Citigroup has an adjusted Market Cap of $81.36 billion and a P/E ratio of 6.7, which indicates it's trading at a low earnings multiple.
Significant changes were reported within the Institutional Clients Group's revenue stream. Total Investment Banking saw a boost of 33.8%, while fixed-income markets increased by 16.3%, generating $3.56 billion in revenue. Equity Markets, on the other hand, experienced a downturn of 8.8%, resulting in a revenue of $918 million, bringing Total market revenues to $4.48 billion.
Growth was also observed in the Personal Banking and Wealth Management sectors. U.S. personal Banking revenues increased by 13% to $4.89 billion and Global Wealth Management revenues rose slightly by 1.6% to $1.89 billion.
In addition, Citigroup's legacy franchises in Mexico - including consumer, small business, and middle market banking - saw a substantial revenue increase of 32.3%, reaching $1.55 billion. Legacy Holdings Assets, however, experienced a decrease, dropping to -$7 million.
Over the past month, Citigroup's shares have seen a return of -3.7%, compared to the S&P 500 composite's -2.4%. Currently, the stock holds a Zacks Rank #3 (Hold). InvestingPro data shows that the stock's price is 77.85% of its 52-week high, with a previous close price of $41.53.
InvestingPro Tips suggests that despite the company's strong performance, there are concerns about its cash flow and declining earnings per share trend. Eight analysts have revised their earnings downwards for the upcoming period, which could potentially impact the company's future performance. Despite these challenges, Citigroup has maintained its dividend payments for 13 consecutive years, offering a dividend yield of 5.1% as per InvestingPro data.
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