Jane Fraser, CEO of Citi, speaks in the course of the Milken Institute Global Conference on May 1, 2023 in Beverly Hills, California.
Patrick T. Fallon | AFP |
Citigroup on Friday Posted Second-quarter results exceeded earnings and revenue expectations attributable to a recovery in activity on Wall Street.
The company announced the next:
- Earnings: $1.52 per share versus $1.39 per share expected, in keeping with LSEG
- Revenue: $20.14 billion versus $20.07 billion expected, in keeping with LSEG
Net profit rose 10% year-on-year to $3.22 billion, or $1.52 per share, the bank said. Sales rose 4% to $20.14 billion.
Equity trading revenue rose 37 percent to $1.5 billion, driven by strength in derivatives trading and an increase in hedge fund balances, about $300 million above StreetAccount’s estimate.
Fixed income revenues fell 3% to $3.6 billion, broadly in keeping with analyst expectations, reflecting lower activity in rate of interest and foreign exchange markets.
Investment banking revenues increased 60% to $853 million, driven by strong investment-grade debt issuance and a recovery in IPO and merger activity from low levels in 2023.
The bank’s shares rose 3 percent in premarket trading.
“Our results demonstrate the progress we are making in executing our strategy and the benefits of our diversified business model,” Citigroup CEO Jane Fraser said within the press release. “Markets had a strong finish to the quarter, resulting in better performance than we expected.”
Citigroup was just this week reprimanded for failing to handle the regulatory deficiencies, which is why analysts shall be keen to query Fraser about her long-standing efforts to resolve the issue.
Last 12 months, Fraser announced plans to simplify the management structure of the third-largest U.S. bank by assets and cut costs, but profits will take a back seat if the bank cannot address regulators’ concerns about its data and risk management.
JPMorgan Chase reported the outcomes on Friday, while Goldman Sachs, Bank of America And Morgan Stanley Report next week.
This story is developing. Please check back later for updates.
Correction: This article has been updated to correct that Citigroup reported second-quarter revenue of $20.14 billion. An earlier version misstated the figure attributable to a rounding error.
