- Citi reports Q3 results before the open on October 13, with consensus EPS of $2.66 versus $2.24 a year ago and an Earnings Whisper of $2.84.
- Citi reaffirmed its FY26 net interest income excluding Markets outlook of $89.5 billion to $90.3 billion.
- Management cautioned that the usual second-half Markets revenue decline of around 20% could be steeper this year after a strong first half.
- U.S. cards non-interest revenue fell 47% and expenses rose 10%, with cards expense growth expected to outpace revenue for several quarters as Citi absorbs the American Airlines portfolio acquired from Barclays.
- Citi kept its full-year efficiency ratio target near 60% while running around 57% to 58% through June, implying a deliberate step-up in investment.
- The S&P 500 is nearing a record high, closing at 7,811.54, with analysts expecting Q3 earnings growth of approximately 31% year over year.
Quotes
“Management said cards expense growth will outpace revenue for several quarters as it absorbs the American Airlines portfolio acquired from Barclays”
“The October 13 release, due before the open, will test whether that skepticism is justified.”