(Reuters) – Citigroup reported third-quarter profit up 16% on Tuesday, as all its divisions posted record revenues thanks to the recovery in activity.

Citigroup, whose profit reached $3.8 billion (3.29 billion euros) over the period, benefited from mega-deals concluded by companies despite uncertainty over US President Donald Trump’s customs policies.

This increase in profit comes despite the loss of $726 million recorded on the sale of a 25% stake in its Mexican subsidiary Banamex.

Its earnings per share jumped 23% to $1.86.

Revenue at Citi’s banking division rose 34% to $2.1 billion, the strongest growth among its five divisions.

Global transactions increased in the first nine months of 2025, as a rise in large-scale deals pushed activity to records.

Global M&A mega-deals surged to $1.26 trillion in the third quarter, a 40% increase from the same period last year.

Citi’s markets revenue rose 15% to $5.6 billion in the third quarter, driven by strong performance in fixed income.

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

Citi’s return on tangible equity was 8% in the quarter and 8.6% this year, well below the 10% to 11% target set by Chief Executive Jane Fraser for next year.

Citi rival JPMorgan Chase and Wells Fargo also reported higher third-quarter profits on Tuesday, boosted by the investment bank.

Citi stock rose 36.5% in 2025, compared to 28.5% for JPMorgan and 12.4% for Wells Fargo. The KBW banking index is up almost 15% since the start of the year.

SALE OF BANAMEX IN MEXICO

Citi announced last month the sale of a 25% stake in its Banamex retail unit to Mexican billionaire Fernando Chico Pardo, chairman of airport operator ASUR, for about $2.3 billion.

This sale resulted in a goodwill impairment of $726 million, which reduced third-quarter results.

The bank then announced that it planned to launch a public offering for the rest of the unit.

However, Mexican mining and transportation conglomerate Grupo Mexico surprisingly made an unsolicited $9.3 billion offer for Banamex.

Citi rejected the offer last week.

The bank bought Banamex in a $12.5 billion deal in 2001. Chief executive Jane Fraser decided to sell Banamex as she divested overseas operations. Citi, however, struggled to find a buyer after negotiations with Grupo Mexico failed in 2023.

(Written by Tatiana Bautzer in New York and Pritam Biswas in Bangalore, Etienne Breban, edited by Augustin Turpin)

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