Citigroup Issues FY23 Outlook; Expects Modest Buybacks In Q4

(RTTNews) - Citigroup Inc. (C) said, for full year 2023, the company projects revenues of $78 - $79 billion, excluding 2023 divestiture-related impacts. Full year 2023 expenses are projected to be approximately $54 billion, excluding 2023 divestiture-related impacts and FDIC special assessment. The company expects modest buybacks in the fourth quarter.

Third quarter net income was $3.5 billion, increased 2% from the prior-year period, primarily driven by the higher revenues, partially offset by the higher expenses and the higher cost of credit. Earnings per share was $1.63, flat with last year. Net income, excluding divestiture impacts was $3.33 billion, up 3%. EPS, excluding divestiture impacts, were $1.52 compared to $1.50. Analysts on average had expected the company to earn $1.21 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items

Third quarter revenues were $20.1 billion, up 9% from a year ago. The company said the higher revenues reflected strength across Services, US Personal Banking and Markets, as well as growth in Banking, which was offset by the revenue reduction from the closed exits and wind-downs. Operating expenses were $13.5 billion, up 6%, largely driven by investments in risk and controls, severance and the impact of inflation. Analysts on average had estimated $19.32 billion in revenue.

Shares of Citigroup are up 2% in pre-market trade on Friday.

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