Citigroup's (NYSE:C) Q3 2024 report showcases solid, incremental progress, with revenues rising to $20.3 billion, up 1% year-on-year. Even more telling, when stripping out the noise from divestitures, revenues actually increased by 3%, driven by key segments like Services, Markets, and Investment Banking. While net income dipped from $3.5 billion to $3.2 billion, largely due to higher credit costs, the company maintained strong momentum across its core businesses. The bottom line? Citigroup's efficiency measures are paying off, with expenses down 2%, showing real traction in their transformation strategy.

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The Services division stood out, posting record revenues of $5 billiona solid 8% increase year-on-year. This growth was anchored by Securities Services and Treasury and Trade Solutions, where Citi is clearly capitalizing on strong demand. On the Markets side, Equities were up a notable 32%, driven by growth in prime balances and equity derivatives. While Fixed Income markets had a minor pullback due to less favorable rates and currency performance, Investment Banking surged with a 31% jump in revenues, particularly in debt issuance and advisory services. Citigroup's ability to pivot and capture opportunities in volatile markets shows investors the strength of its business model.

Despite higher credit costsup 45% year-on-yearCitigroup remains in a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 13.7%. The bank returned $2.1 billion to shareholders via dividends and share repurchases, reflecting confidence in its balance sheet. The message here is clear: Citigroup is successfully balancing strategic investments with shareholder returns while navigating a challenging macroeconomic backdrop. This quarter shows that the groundwork laid through its simplification efforts is setting up a solid foundation for sustained growth into 2025 and beyond.

This article first appeared on GuruFocus.