citi group on Friday reported first-quarter revenue that topped analyst estimates, helped by better-than-expected results in the bank's trading and investment banking operations.
Here's how the company performed, compared to estimates from LSEG, formerly known as Refinitiv:
- Earnings: $1.86 per share, adjusted, versus $1.23 expected
- Revenue: $21.1 billion vs. $20.4 billion expected
The bank said earnings fell 27% from a year earlier to $3.37 billion, or $1.58 per share, due to higher expenses and credit costs. Adjusting for the impact of the FDIC charges, as well as restructuring and other costs, Citi earned $1.86 per share, according to LSEG calculations.
Revenue fell 2% to $21.1 billion, driven primarily by the impact of the sale of an overseas business in the same period a year earlier.
Investment banking revenue rose 35% to $903 million in the quarter, driven by increased debt and equity issuance, beating StreetAccount's estimate of $805 million.
Fixed income trading income fell 10% to $4.2 billion, beating the estimate of $4.14 billion, and equity income rose 5% to $1.2 billion, beating the estimate of $1.12 billion.
The bank also posted an 8% gain to $4.8 billion in revenue in its Services division, which includes businesses serving the banking needs of global corporations, thanks to rising deposits and fees.
The bank's shares fell nearly 2% on Friday.
Citigroup Chief Executive Jane Fraser previously said its sweeping corporate overhaul would be complete by March and the company would give an update on severance spending along with first-quarter results.
“Last month marked the end of the organizational simplification we announced in September,” Fraser said in the earnings release. “The result is a cleaner, simpler management structure that fully aligns with and facilitates our strategy.
Last year, Fraser announced plans to simplify the management structure and reduce costs at the third-largest U.S. bank by assets. The bank on Friday reiterated its medium-term goals for yields to reach at least 11% and generate at least $80 billion in revenue this year.
JPMorgan Chase reported the results early Friday, and Goldman Sachs reports on Monday.
