Citigroup Q2 Earnings Beat After Banking Giant Rivals Fall Short
Citigroup beat second-quarter forecasts Friday, helped by strong trading revenue, after other banking rivals reported weak results.
Shares rallied 3.8% to $45.80 in premarket trading.
Here are the key numbers:
- Quarterly revenue: $19.64 billion vs. $18.48 billion predicted by Bloomberg analysts
- Diluted earnings per share: $2.19 vs. $1.70 analyst consensus
- Net income: $4.5 billion, down 27% from a year ago
Earnings per share declined 23% from a year ago as the higher cost of credit and expenses weighed on net income, but revenue was up 11%.
Equity trading revenue grew 8% to $1.2 billion, and fixed income trading revenue jumped 31% to $4.1 billion. But investment banking revenue sank 46% to $805 million.
unit saw revenue climb 9% to $4.1 billion, while global wealth management revenue was flat at $1.9 billion.
continued to create strong corporate client activity for us, driving revenue growth of 25% in markets. While economic sentiment clearly impacted investment banking and wealth management, we continue to invest in these businesses and we like where they are headed,” said CEO Jane Fraser in a statement
Citigroup’s report contrasts with a gloomy initial round of earnings for other top US banks, which have been hit by a steep downturn in the stock market as well as signs of caution among consumers and businesses amid growing fears of a
Also Friday, Wells Fargo reported weak quarterly results as provisions for loan losses ramped up.
On Thursday, JPMorgan Chase missed second-quarter forecasts, and CEO Jamie Dimon warned the global economy is fragile. Also on Thursday, Morgan Stanley fell short of views, led by weakness in investment banking.
Bank of America and Goldman Sachs are due to report on Monday.