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Citigroup's profit falls 11 per cent, but beats forecasts

NEW YORK, N.Y. – Citigroup said Friday that its profit fell nearly 11 per cent in its third quarter, but the results easily beat Wall Street expectations and its shares rose.

The New York bank reported net income of $3.8 billion, or $1.24 per share, in the three months ending Sept. 30, compared with $4.3 billion, or $1.35 per share, in the same quarter the year before.

That’s better than the $1.15 per share that Wall Street analysts expected, according to FactSet.

Revenue fell 5 per cent to $17.76 billion in the quarter, beating the $17.29 billion that analysts expected.

The company’s revenue was dragged down by its Citi Holdings unit, which holds assets that the company plans to sell off. Revenue in that unit fell 48 per cent, the company said. But revenue at its global consumer banking division, which includes Citibank, rose 1 per cent. Investment banking revenue rose 15 per cent.

On Friday, Citigroup’s rival JPMorgan Chase & Co. also reported better-than-expected results for the third quarter.

Citigroup’s stock rose $1.27, or 2.6 per cent, to $49.75.