Jane Fraser, Citi, at the World Economic Forum, Davos, January 17, 2023.
Adam Gallica | CNBC
Citigroup Shares in Premarket rose on Friday after the bank reported second-quarter earnings and revenue that beat expectations.
Here’s how the company performed in the quarter compared to what the analysts Refinitiv polled expected from the banking giant.
- Earnings per share: $1.33 vs. $1.30
- Revenue: $19.44 billion vs. $19.29 billion
Citigroup shares jumped more than 1% in pre-market trading. The stock is up 5.4% year-to-date, outperforming SPDR S&P Bank ETF (KBE), which decreased by 14.8%.
“Amidst a challenging macroeconomic backdrop, we have continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said in a statement.
While it beat Street’s estimates, Citi’s revenue fell 1% from a year ago as downturns in markets and investment banking weighed on the result. Citi said the uncertain macro environment and low volatility affected client activity and market performance.
Citigroup’s net income decreased by 6%, to $2.9 billion, compared to the same quarter of last year, due to higher expenses, higher credit costs, and lower revenues.
“Markets’ yields eased from last year’s strong second quarter as customers stood on the sidelines starting in April while the US debt cap leveled,” Fraser said. In banking, the long-awaited recovery in investment banking has yet to materialize, which made for a disappointing quarter.
On the bright side, revenue from personal banking and wealth management increased 6% in the first quarter to $6.4 billion driven by strong loan growth.
Citi returned a total of $2 billion to shareholders through joint dividends and share repurchases in the second quarter.
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