Citigroup’s Q3 profit rises 16% on record revenue, while Mexico sales slow

Citigroup reported a rise in third-quarter profit as all its divisions generated record revenue, sending the bank’s shares up about 1% in pre-bell trading.

Citi and its peers benefited from a rebound in activity in the third quarter as companies struck mega-deals despite uncertainty over US President Donald Trump’s tariff policies.

Net income in the reported quarter rose 16% to $3.8 billion for Citi, compared to a year earlier, while earnings per share rose 23% to $1.86.

The rising profits came even after Citi posted a $726 million loss, which stemmed from the sale of a 25% stake in its Mexican subsidiary Banamex.

BUSINESS POWER

Citi’s banking division revenue rose 31.3% to $2.1 billion, the largest growth among the five divisions.

Global dealmaking has surged in the first nine months of 2025, driven by a sharp increase in the number of large transactions, pushing investment banking to historic peaks. Megadeals in global M&A rose to $1.26 trillion in the third quarter, up 40% from the same period last year. Citi’s market revenue rose 16.7% to $5.6 billion in the quarter, helped by strong performance in fixed income.

A rate cut in September 2025 and hopes of further easing this year could help banks by boosting economic activity and borrower demand.

Citi’s return on tangible common stock was 8% in the quarter and 8.6% so far this year, well below CEO Jane Fraser’s target of 10% to 11% for next year.

Peers JPMorgan Chase and Wells Fargo also reported higher third-quarter profits earlier on Tuesday, supported by investment banking.

Citi’s shares are up 36.5% through 2025, compared with gains of 28.5% for JPMorgan and 12.4% for Wells Fargo. The KBW banking index is up almost 15% year to date.

Turnover in the services, power and retail units increased between 6% and 10%.

MEXICO SALES

Citi announced last month it would sell a 25% stake in its Banamex retail unit to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR, for about $2.3 billion. The sale led to a $726 million goodwill impairment charge, which reduced the lender’s third-quarter revenues.

The bank planned to hold a public offering for the remainder of the unit, the bank said at the time. However, in a surprise move, Mexican mining and transportation conglomerate Grupo Mexico made an unsolicited $9.3 billion bid for Banamex.

Citi rejected the offer last week.

The bank bought Banamex in 2001 in a $12.5 billion deal. CEO Fraser decided to sell it as she divested foreign businesses, but Citi struggled to find a buyer after talks with Grupo Mexico collapsed in 2023.