Citigroup Inc. (C) reported that its third quarter net income increased 48% year-on-year driven by a lower cost of credit, partially offset by the lower revenues and higher expenses. Excluding the impact of the sale of consumer business in Australia, third quarter revenues improved 3% from prior year. The company said the revenue growth was largely driven by growth across the Institutional Clients Group.
Third quarter earnings per share was $2.15 compared to $1.36, previous year. Excluding impact of Australia sale, earnings per share was $2.44, for the quarter. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $1.65, for the quarter. Analysts' estimates typically exclude special items. Excluding impact of Australia sale, adjusted net income was $5.2 billion, for the quarter.
Net income increased to $4.6 billion from $3.2 billion. The company recorded credit benefit of $0.2 billion in the third quarter 2021 compared to a cost of credit of $2.4 billion in the prior-year period, reflecting a release of allowance for credit loss reserves and an improvement in net credit losses, driven by continued improvement in portfolio credit quality.
Third quarter reported revenues were $17.2 billion, down 1% from last year. Adjusted revenues were $17.8 billion, for the quarter. Analysts expected revenue of $16.97 billion, for the quarter. Institutional Clients Group recorded revenues of $10.8 billion, up 4%.
"We remain committed to returning excess capital over and above the amount necessary to invest in our franchise and to maintain our safety and soundness," Jane Fraser, Citi CEO, said.
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