Citigroup on Friday Posted Second-quarter results exceeded earnings and revenue expectations resulting from a recovery in activity on Wall Street.
The company announced the next:
- Merits: $1.52 per share versus expected $1.39 per share, in accordance with LSEG
- Revenue: $20.14 billion in comparison with expected $20.07 billion
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 consistent 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 bond issuance and a recovery in IPO and merger activity from low levels in 2023.
The bank's shares fell nearly 2 percent.
“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 since it has failed to deal with its regulatory deficiencies.
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 Citigroup cannot address regulators' concerns about its data and risk management.
JPMorgan Chase announced the outcomes on Friday, while Goldman Sachs, Bank of America And Morgan Stanley Report next week.
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