Jane Fraser, CEO of Citi, speaks throughout the Milken Institute International Convention in Beverly Hills, California, on Might 1, 2023.
Patrick T. Fallon | AFP | Getty Photos
Citigroup on Friday posted second-quarter outcomes that topped expectations for revenue and income on a rebound in Wall Road exercise.
Here is what the corporate reported:
- Earnings: $1.52 a share vs. $1.39 a share anticipated, in response to LSEG
- Income: $20.14 billion vs. $20.07 billion anticipated
The financial institution stated web revenue jumped 10% from a yr earlier to $3.22 billion, or $1.52 a share. Income rose 4% to $20.14 billion.
Equities buying and selling income rose 37% to $1.5 billion, pushed by power in derivatives and an increase in hedge fund balances, roughly $300 million greater than the StreetAccount estimate.
Mounted revenue income dipped 3% to $3.6 billion, primarily matching analysts’ expectations, on decrease exercise in charges and forex markets.
Funding banking income surged 60% to $853 million, pushed by sturdy issuance of investment-grade bonds and a rebound in IPO and merger exercise from low ranges in 2023.
Shares of the financial institution fell greater than 2% in early buying and selling.
“Our outcomes present the progress we’re making in executing our technique and the good thing about our diversified enterprise mannequin,” Citigroup CEO Jane Fraser stated within the launch. “Markets had a robust end to the quarter main to raised efficiency than we had anticipated.”
Citigroup was simply this week rebuked for failing to repair its regulatory shortfalls, so analysts will probably be eager to ask Fraser about her long-running efforts to deal with the difficulty.
Final yr, Fraser introduced plans to simplify the administration construction and scale back prices on the third-biggest U.S. financial institution by property. However earnings will take a backseat if Citigroup can not appease regulators’ considerations about its knowledge and danger administration.
JPMorgan Chase introduced outcomes earlier Friday, whereas Goldman Sachs, Financial institution of America and Morgan Stanley report subsequent week.
This story is growing. Please examine again for updates.
Correction: This text has been up to date to appropriate that Citigroup reported income of $20.14 billion for the second quarter. A earlier model misstated the determine as a result of a rounding error.
