Citigroup posts better-than-expected earnings and revenue, shares rise
Citigroup shares rose in premarket trading on Friday after the bank reported second-quarter earnings and revenue that topped expectations.
Despite the beat, Citi's revenue fell 1% from a year ago as the decline in markets and investment banking businesses weighed on its results. Citi said the uncertain macroenvironment and low volatility impacted client activity and market performance.
«Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,» CEO Jane Fraser said in a statement.
Here's how the company fared in the quarter compared with what analysts polled by Refinitiv expected from the banking giant.
Citigroup's net income fell 6% to $2.9 billion, or $1.33 per share, from $4.5 billion, or $2.19 per share, last year, pressured by higher expenses, high cost of credit and lower revenue.
«Markets revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out,» Fraser said. «In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter.»
On the bright side, revenue from personal banking and wealth management increased 6% in the quarter to $6.4 billion driven by strong loan growth.
Citi returned a total $2 billion to shareholders through common dividends and share buybacks in the second quarter.
Shares of Citigroup climbed more than 1% in premarket trading. The stock is up 5.4% year to date, outperforming the SPDR S&P Bank ETF (KBE), which is down 14.8%.
Read the earnings release here.
Read more on cnbc.com
