Citigroup We announced the results for the second quarter on Wednesday. It benefited from an increase of $ 1.1 billion from the release of reserves that banks had set aside for bad debt losses.
Here’s how to bank.
Revenue: At $ 2.85 per share, it exceeds the analysts’ estimate of $ 1.96 surveyed by Refinitiv.
Revenue: It exceeds the estimate of $ 17.47 billion and $ 17.2 billion.
Banks exceeded their earnings expectations, but this number fell 12% year-on-year due to lower bond trading results, lower credit card loans and lower interest rates.
After releasing the allowance for doubtful accounts, the company’s revenue surged, resulting in a profit of $ 1.1 billion after amortization of $ 1.3 billion. A year ago, banks were forced to secure billions of dollars due to expected credit losses, resulting in $ 8.2 billion in credit costs.
After reporting the financial results, the bank’s stock price rose 1.6%.
“The pace of global recovery is faster than previously expected, which has led to increased consumer and corporate trust,” said the CEO. Jane Fraser Said in the release. “This was seen throughout the business, as reflected in the performance of investment banks and equity and the significant increase in credit card spending. We need to be aware of the unevenness of global recovery. But I’m optimistic about the future momentum. “
Like other Wall Street rivals, Citigroup recorded a sharp decline in fixed income trading revenues this quarter. The fixed income business generated $ 3.2 billion in revenue, below an estimated $ 3.66 billion.
However, the expected decline in fixed income trading was offset by higher-than-expected results for equities and investment banks. $ 1.1 billion in equity trading revenue exceeded the $ 879 million estimate and $ 1.8 billion in investment banking fees exceeded the $ 1.64 billion estimate.
Fraser, who became CEO in February, Announcement In April, Citigroup closed retail in 13 countries outside the United States to improve profitability. Analysts are now wondering what else Fraser is planning for a strategic renewal of Citigroup, the third largest US bank in assets.
Citigroup shares rose 11% this year before Wednesday, compared to a 26% rise in the KBW Bank Index.
Last Wednesday, Bank of America made the following revenues: Missed Analysts’ expectations driven by lower interest rates. on Tuesday, JP Morgan Chase And Goldman Sachs■ Results that exceeded expectations were posted, supported by strong earnings from Wall Street advisory activities.
Become a smarter investor CNBC Pro..
Get stock selection, analyst phone calls, exclusive interviews, and access to CNBCTV.
Sign up and get started Free trial today..