Profits rose 2% to $3.55 billion, or $1.63 per share. Analysts had expected $1.23 per share.
Revenue rose 9% to $20.14 billion. Analysts had expected $19.27 billion.
In markets operations, total trading revenue rose 10% to $4.48 billion. Fixed income trading increased by 14% thanks to client trading volumes for interest rates and currencies. Equity trading revenues fell by 3%.
Revenue from Citigroup’s core business – providing banking services to major companies around the world and helping them move money – rose 13% to $4.72 billion, supported by higher interest rates.
In corporate banking, which includes investment banking fees from mergers, equity and debt sales as well as lending to larger companies, revenue rose 18%.
At its US consumer bank, revenue rose 13% to $4.89 billion as credit card spending and fees rose.
In the wealth management operation, which is seeking growth and is a key component of the planned transformation, revenue rose 2% to $1.9 billion.
The measure of profitability that Citi investors focus on, the return on tangible common stock, fell to 7.7% from 8.2% a year ago. That was better than expected.
Credit card spending volumes were higher than a year ago, but down compared to the second quarter.
CFO Mark Mason told reporters on a conference call that the consumer is “still quite resilient,” though he added that customers with lower credit scores — often associated with lower income — are under more pressure.
Expenditures rose 6% to $13.5 billion, which was roughly what was expected. Executives are in the midst of an extensive staff restructuring that will result in headcount reductions in the coming months.
Citi shares rose about 3% early Friday.
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