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Citigroup Inc C

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Citi Sells off Australian Consumer Unit for Loss in Tough Q3 for International Consumer Business

Eric Compton, CFA Senior Equity Analyst

Analyst Note

| Eric Compton, CFA |

Narrow-moat Citigroup reported decent third-quarter earnings, easily beating FactSet consensus EPS of $1.71 with reported EPS of $2.15. This equates to a return on tangible common equity of 11% for the quarter. The bank benefited from a provisioning benefit once again, as credit costs remain non-existent. Charge-offs have been exceptionally low for the industry this quarter, and Citi’s card balances have also fallen substantially, further helping to lower the bank’s credit costs. Expenses continued to build, up 3% over last quarter as the bank continues to invest in its backend and regulatory initiatives. Revenue would have been up roughly 2% if not for the estimated $680 million loss on the bank’s sale of its consumer operations in Australia. It’s good that the bank is pruning some of its less successful operations, but this serves as a reminder of some of the bad investments the bank has made over the years.

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Company Profile

Business Description

Citigroup is a global financial services company doing business in more than 100 countries and jurisdictions. Citigroup's operations are organized into two primary segments: the global consumer banking segment, which provides basic branch banking around the world, and the institutional clients group, which provides large customers around the globe with investment banking, cash management, and other products and services.

Contact
388 Greenwich Street
New York, NY, 10013
T +1 212 559-1000
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 210,000

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