Citigroup Battles Challenges with Strategic Shifts Amid Profit Dip

Citigroup saw a 9% decline in third-quarter profits due to loan repayment concerns, though strategic developments offer hope. Revenue increased slightly, with investment banking and securities services showing strong growth. Meanwhile, Citi continues to address regulatory issues and focus on data management improvements, aiming to regain stability and trust.

Citigroup reported a 9% drop in third-quarter profits, as the bank increased reserves against potential loan defaults, primarily in credit cards. The net income fell to $3.2 billion, translating to $1.51 per share, from $3.5 billion or $1.63 per share a year ago, as announced on Tuesday.

Despite the profit decline, CEO Jane Fraser expressed optimism, highlighting strategic progress with a 1% rise in revenue to $20.3 billion. Citigroup's investment banking sector showed robust activity, evidenced by a 31% revenue increase to $934 million, while services and equities trading also performed well.

Efforts to address regulatory criticisms continue, with an emphasis on data management. Tasking technology head Tim Ryan alongside COO Anand Selva, Citi aims to tackle long-standing issues. The bank's shares have risen 28% this year, outpacing broad market indexes.

(With inputs from agencies.)