Citigroup profit beats target but shares fall

Citigroup Inc. C, +1.49% shares dropped 1.3% in premarket trades Friday after the bank posted stronger-than-expected profit, but revenue fell 1% after breaking out divestiture-related impacts, as growth in net interest income was more than offset by lower non-interest revenue. Citi said its third-quarter net income dropped to $3.5 billion, or $1.63 per share, from $4.6 billion, or $2.15 a share, in the year-ago quarter. Excluding divestiture-related impacts, earnings were $1.50 a share. Revenue increased to $18.5 billion from $17.4 billion. Analysts were looking for earnings of $1.42 a share and revenue of $18.26 billion for Citigroup, according to a FactSet survey. Shares of Citigroup are down 28.9% in 2022, while the Dow Jones Industrial Average DJIA, +0.83% has lost 17.3% and the S&P SPX, +0.66% is off by 23% so far this year.