Citigroup shares rise on better-than-expected earnings and revenue

Citigroup Second-quarter earnings and revenue reported on Friday topped expectations.

Despite the strong performance, Citigroup’s revenue fell 1% from a year earlier as a downturn in markets and investment banking weighed on its results. Citi said an uncertain macro environment and low volatility impacted client activity and market performance.

“Amid a challenging macroeconomic backdrop, we continue to see the benefits of a diversified business model and a strong balance sheet,” Chief Executive Jane Fraser said in a statement.

Here’s how the New York-based lender performed in the quarter, compared with analysts’ expectations for the banking giant polled by Refinitiv.

  • EPS: $1.33 vs $1.30
  • Revenue: $19.44 billion vs $19.29 billion

Citigroup’s net income fell 36% to $2.9 billion, or $1.33 a share, from $4.5 billion, or $2.19 a share, last year, due to higher expenses, high credit costs and lower revenue.

“Markets revenues were down from last year’s strong second quarter as clients waited from April while the U.S. debt ceiling expired,” Fraser said. “In banking, investment banking saw a long-awaited The rebound has yet to materialize, leading to a disappointing quarter.”

On the bright side, personal banking and wealth management revenue rose 6% to $6.4 billion in the quarter, driven by strong loan growth.

Citi returned a total of $2 billion to shareholders in the second quarter through ordinary dividends and share repurchases.

Citigroup shares fell 4 percent on Friday.The stock is up more than 1% so far this year, outperforming the broader market SPDR S&P Bank ETF (KBE), down about 12%.

Read the earnings report here.

Correction: Citigroup’s net profit fell 36% year-on-year. The previous version incorrectly stated percentages.

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