Finance

Citigroup earnings top Street estimates as credit costs from the pandemic stabilize

Michael Corbat, CEO, Citigroup, speaking at the World Economic Forum in Davos, Switzerland, January 21, 2020.

Adam Galica | CNBC

Citigroup is scheduled to report third-quarter earnings before the opening bell Tuesday.

Here’s what Wall Street expects:

Earnings:  93 cents a share, a 55% decline from a year earlier, according to Refinitiv.

Revenue: $17.2 billion, a 7.3% decline from a year earlier.

Trading Revenue: Fixed income $3.6 billion, Equities $851 million, according to FactSet. 

Citigroup, the third-biggest U.S. bank by assets, is in the midst of a major management change.

Last month, the bank announced that longtime CEO Michael Corbat would be replaced by his deputy Jane Fraser in February, marking the first big Wall Street bank to have a female CEO.

Corbat’s departure was hastened by a sagging share price and pressure from regulators, CNBC reported last month. Last week, the bank agreed to pay a $400 million penalty for failing to address “several longstanding deficiencies” in its risk controls.

Besides forcing it to improve its risk management, regulators can now reject acquisitions sought by the bank and push for changes to management or the board if necessary.

This story is developing. Please check back for updates.