Products You May Like
Citigroup shares rose in premarket trading on Friday after the bank reported second-quarter earnings and revenue that topped expectations.
Despite the beat, Citi’s revenue fell 1% from a year ago as the decline in markets and investment banking businesses weighed on its results. Citi said the uncertain macroenvironment and low volatility impacted client activity and market performance.
related investing news
“Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said in a statement.
Here’s how the company fared in the quarter compared with what analysts polled by Refinitiv expected from the banking giant.
- Earnings per share: $1.33 vs. $1.30
- Revenue: $19.44 billion vs. $19.29 billion
Citigroup’s net income fell 6% to $2.9 billion, or $1.33 per share, from $4.5 billion, or $2.19 per share, last year, pressured by higher expenses, high cost of credit and lower revenue.
“Markets revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out,” Fraser said. “In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter.”
On the bright side, revenue from personal banking and wealth management increased 6% in the quarter to $6.4 billion driven by strong loan growth.
Citi returned a total $2 billion to shareholders through common dividends and share buybacks in the second quarter.
Shares of Citigroup climbed more than 1% in premarket trading. The stock is up 5.4% year to date, outperforming the SPDR S&P Bank ETF (KBE), which is down 14.8%.
Read the earnings release here.