Citigroup Reports 9% Profit Decline in Q3

Citigroup reported a 9% decline in net income for the third quarter, dropping to $3.2 billion as the bank set aside more funds for potential loan defaults, particularly in its credit card sector. Despite this, overall revenue increased slightly to $20.3 billion, buoyed by strong investment banking performance, which saw revenues rise to $934 million amid a recovery in capital markets. CEO Jane Fraser emphasized ongoing efforts to simplify operations and address persistent regulatory issues, with the bank receiving some relief from the Federal Reserve regarding past enforcement actions. However, Citigroup has faced scrutiny over its risk management practices, prompting calls from lawmakers for stricter growth limitations until improvements are made. The bank's CET1 capital ratio stood at 13.7%, indicating a solid capital position despite the challenges. Investors remain cautious but optimistic about the potential for recovery following recent interest rate cuts and improvements in capital market activities.