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Citigroup (C) delivered robust upside for Q3, comfortably surpassing EPS and revenue expectations. Excluding a goodwill impairment charge tied to the sale of a 25% stake in Banamex, adjusted EPS rose 48% yr/yr to $2.24. Record revenue across all business segments fueled the beat, driven by 12% NII growth and a 7% increase in loans to $734 bln. FY25 guidance was also raised, with Citigroup now forecasting NII growth of approximately 5.5% (up from 4%) and revenue above $84.0 bln.

• Net Interest Income (NII) rose 12% yr/yr, supported by loan growth and a favorable rate backdrop, with deposits holding steady despite funding competition.
• US Personal Banking (USPB) revenue increased 7% to $5.3 bln, driven by Branded Cards and Retail Banking. Tailwinds include resilient consumer spending, solid credit quality, and steady deposit growth.
• Banking revenue jumped 34% to $2.1 bln, led by a 23% rise in Investment Banking, fueled by a 35% surge in Equity Capital Markets and a 19% gain in Debt Capital Markets. Advisory was up 8%. This strength reflected improving deal activity and an active IPO pipeline.
• Markets revenue climbed 15% to $5.6 bln. Equities rose 24% on strong derivatives and cash trading, while Fixed Income gained 12% on solid performance in rates, currencies, and spread products.
• Wealth revenue grew 8% to $2.2 bln, supported by client inflows, higher AUM, and strong momentum in Citigold and Private Bank.

Briefing.com Analyst Insight:

Citigroup’s Q3 results were among its best in recent years, underscoring broad-based strength across its franchises. The raised outlook reinforces confidence in its turnaround and execution progress. While cyclical tailwinds—like improving deal flow and stable consumer credit—are helping, Citi’s structural simplification efforts are also showing results. That said, given macro uncertainty and a sharp stock rebound, sustained growth over coming quarters will be key to supporting further upside. Encouragingly, Citi’s diversified revenue mix and stronger balance sheet position it well for a shifting rate environment. If management continues to execute on its cost discipline and capital return plans, the stock could start to close its valuation gap with peers like JPMorgan (JPM) and Bank of America (BAC).