Citigroup Revenue Drops by 7 Percent in the Third Quarter

Citigroup revenue plunged by 7 percent in the third quarter following the huge number of closed accounts by customers that were trying to manage COVID-19 impacts on their finances.

The lender revenue declined by seven percent to $17.3 billion in the quarter, while profit plunged more than one third as customers closed their credit card accounts to spend less.

“We are expecting a somewhat more muted and slower recovery in both unemployment and GDP through 2022,” said Chief Financial Officer Mark Mason.

“In the crisis we are managing through, we’re not seeing acquisitions or new account openings.”

Earlier today, the bank’s shares declined by 4 percent as experts said the third-largest US bank was bracing for prolonged challenges.

Similarly, the bank’s credit loss reserves rose by $314 million in the quarter.

The bank added about $314m to credit loss reserves in the quarter, compared to the $15bn it had set aside in the first half of the year.

Revenue in North American branded cards, the growth engine for Citi’s consumer bank going into the year, fell 12 per cent.