The unit is being disbanded and security services will be provided by Citi's global security function," the statement said. "The investigation uncovered illegal conduct, including fraud in the range of US $15 million, the unauthorized providing of security services to outside parties, and the use of intercepted telecommunications. The 11 also include Costa Rica, El Salvador, Guam, Guatemala, Hungary, Nicaragua, Panama and Peru, as well as the consumer finance business in Korea.Ĭiti issued a separate statement Tuesday morning on the results of a previously disclosed independent investigation into its Banamex unit in Mexico, which provided personal security services. But upcoming problems on the Libor scandal, auto lending or foreign exchange trading are likely to be much smaller than the fines imposed for the financial crisis of 2007 to 2009, Bove says.Ĭiti said it expects to substantially complete the sale of its consumer banking businesses in the 11 affected markets by the end of 2015. "They're just too good a source of funding for the government," he says. "Lending has picked up around the world for Citigroup," Bove says.īove doesn't think that Citi's regulatory woes are over. "It has been doing an excellent job in investment banking," says Richard Bove, analyst at Rafferty Capital.Ĭorporate lending revenues rose 17% vs. Investment banking revenues increased 32% vs. The banking giant did fare well in some areas. "Our consumer bank and institutional business each had solid performance during the quarter and generated stronger revenues both sequentially and year-on-year," CEO Michael Corbat said in a statement.Ĭitigroup shares were up $1.56 to $51.45 in the first half hour of regular trading Tuesday. Revenues rose to $19.6 billion in the third quarter from $17.9 billion the same period a year ago. The bank intends to focus on 24 markets where it has the largest scale and most growth potential.Įxcluding adjustments, Citi earned $1.15 a share, beating the consensus estimate of $1.12 a share, according to FactSet's survey of analysts. Citigroup, the nation's third-largest bank by assets, reported third-quarter earnings of $1.07 a share Tuesday, up from $1 in the same period last year.Ĭiti (C) also said it is exiting consumer banking in 11 countries including Japan, the Czech Republic and Egypt.
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