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Citi's divisions report record revenue

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Citi's net income rises 16% despite $726 million loss from

Banamex sale

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Citi's markets revenue boosted by strong fixed income

performance

(Adds details throughout)

By Tatiana Bautzer and Pritam Biswas

Oct 14 (Reuters) - Citigroup ( C/PN ) reported a rise in

third-quarter profit, as all its divisions brought in record

revenue.

Shares of the bank rose about 1% in trading before the bell

on Tuesday.

Citi and its competitors benefited from a resurgence in

activity in the third quarter as companies struck megadeals,

despite uncertainty over U.S. President Donald Trump's tariff

policies.

Net income in the reported quarter climbed 16% to $3.8

billion for Citi, compared with a year earlier, while earnings

per share jumped 23% to $1.86.

The surging profits came even after Citi booked a $726

million loss, which emerged from the sale of a 25% stake in its

Mexican subsidiary Banamex.

BUSINESS STRENGTH

Revenue in Citi's banking unit gained 31.3% to $2.1 billion,

the biggest growth across its five divisions.

Global dealmaking surged in the first nine months of 2025,

driven by a strong increase in large transactions that pushed

investment banking toward historic peaks.

Megadeals in global mergers and acquisitions surged to $1.26

trillion in the third quarter, marking a 40% increase from the

same period last year.

Citi's markets revenue rose 16.7% to $5.6 billion in the

quarter, helped by a strong performance in fixed income.

A rate cut in September 2025, and hopes of further easing

this year, could help banks by spurring economic activity and

demand from borrowers.

Citi's return on tangible common equity stood at 8% in the

quarter and 8.6% so far this year, well short of the target set

by CEO Jane Fraser of 10% to 11% for next year.

Revenue in its services unit rose 8%, while wealth, a key

area of growth for the bank, jumped 10%. The wealth revenue

increase was supported equally by strong performances across

Citigold and private bank.

"Every business had record third-quarter revenue, improved

returns and positive operating leverage," CEO Jane Fraser said

in a statement.

Peers JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) also

reported higher third-quarter profits earlier on Tuesday, buoyed

by investment banking.

Citi's shares have gained 36.5% in 2025, compared with

increases of 28.5% for JPMorgan ( JPM ) and 12.4% for Wells Fargo ( WFC ). The

KBW banking index is up nearly 15% year to date.

MEXICO SALE

Citi announced last month that it would sell a 25% stake in

its retail unit Banamex to Mexican billionaire Fernando Chico

Pardo, chairman of airport operator ASUR, for around

$2.3 billion. The sale triggered a $726 million goodwill

impairment that reduced the lender's third-quarter earnings.

The bank had planned to hold a public offering for the rest

of the unit, it said at the time. However, in a surprise move,

Mexican mining and transport conglomerate Grupo Mexico

made an unsolicited $9.3 billion offer for

Banamex.

Citi rejected the offer last week.

The bank bought Banamex in a $12.5 billion deal in 2001. CEO

Fraser decided to sell it as she divested overseas businesses,

but Citi struggled to find a buyer after talks with Grupo Mexico

fell through in 2023.