Citigroup tops Q3 revenue estimates across all divisions, plans Mexico retail exit

Citigroup beat market expectations in the third quarter with strong results across all of its divisions, pushing its stock up more than 4% on Tuesday.

The bank reported $22.09 billion in revenue, exceeding the expected $21.09 billion, while adjusted earnings per share came in at $2.24, above the forecast of $1.90. Citi’s net income jumped 15% year-on-year to $3.8 billion, driven by robust performance in its services, banking, and markets segments.

The services business delivered its best quarter ever, with revenue up 7% from the same period a year ago. The banking division recorded a 34% surge, while the markets unit posted its strongest third quarter, climbing 15%. Citigroup CEO Jane Fraser said, “Investments in new products, crypto, and AI are driving innovation and improved capabilities across the franchise. The relentless execution of our strategy is delivering stronger business performance quarter after quarter and improving our returns.”

Citi pushes ahead with Banamex stake sale and faces higher costs

Amid the upbeat earnings, Citi confirmed that it is selling a 25% equity stake in its Mexican arm, Banamex, ahead of a public stock offering. The planned sale, part of its broader restructuring strategy, lifted overall expenses by 9% last quarter due to transaction-related costs. Including the Banamex goodwill impairment charge, the bank’s profit jumped 23% to $1.86 billion from a year earlier.

Despite the added costs, Citi’s stock has surged more than 40% since the start of the year, outperforming the S&P 500, which has faced renewed market turbulence tied to trade disputes. The strong quarterly results underscore the bank’s continued progress in optimizing its structure while maintaining steady earnings growth.

Wall Street ends mixed as trade tensions resurface

Markets saw wild swings on Tuesday as investors reacted to both the solid banking results and another flare-up between Washington and Beijing. The S&P 500 closed 0.2% lower at 6,644.31, after falling as much as 1.5% and rising 0.4% during the session. The Dow Jones Industrial Average added 202.88 points, or 0.4%, to close at 46,270.46, while the Nasdaq Composite slid 0.8% to 22,521.70.

Tech stocks stayed under pressure, with Nvidia dragging the Nasdaq lower after recent losses. Caterpillar led the gains on the Dow. The start of Wall Street’s Q3 earnings season helped offset some of the volatility as Citi climbed 3.9%, Wells Fargo jumped 7.2%, and both JPMorgan and Goldman Sachs topped estimates but slipped slightly by the end of the day.

The market turbulence came after President Donald Trump renewed his criticism of China, accusing Beijing of failing to purchase U.S. soybeans as promised. His comments pulled the S&P 500 into the red late in the day, following an earlier rally sparked by optimism over strong corporate earnings. Late last week, Trump had threatened to impose a 100% tariff on Chinese imports, a move that sent the Dow plunging over 800 points on Friday, its largest drop since April 10 when Trump announced ‘Liberation Day.’

By Sunday, however, Trump took a softer tone on Truth Social, writing, “Don’t worry about China, it will all be fine.” Meanwhile, the Cboe Volatility Index (VIX) (Wall Street’s so-called fear gauge) hit a four-month high above 22 during the day before closing at 20.81, reflecting investor caution over potential future shocks.