Citigroup's Q3 Profit Dip Amidst Strategic Improvements

Citigroup's third-quarter profit fell 9% due to increased reserves for potential loan defaults, especially in credit cards. While investment banking and services revenues climbed, CEO Jane Fraser focuses on addressing regulatory challenges and data management deficiencies. Despite earnings dip, Citi's shares have risen 28% this year.

Citigroup announced a 9% decline in its third-quarter profit as the bank reserved more funds to mitigate the risk of potential loan defaults, particularly in its credit card division.

Despite the drop in net income to $3.2 billion from $3.5 billion the previous year, the bank saw a slight rise in revenue to $20.3 billion, driven by gains in investment banking and service revenues. The investment banking unit benefited from a capital markets rebound, with revenues rising to $934 million.

CEO Jane Fraser remains focused on simplifying the bank and addressing regulatory shortcomings. Citi has faced fines due to risk management and data governance deficiencies but received some relief with the termination of a past enforcement action by the Federal Reserve. Efforts to rectify these issues continue under the leadership of key executives.

(With inputs from agencies.)