Jane Fraser, CEO of Citi, speaks during the Milken Institute Global Conference in Beverly Hills, California, May 1, 2023.
Patrick T. Fallon | AFP | Getty Images
Citigroup On Friday, it reported second-quarter results that beat expectations for profit and revenue thanks to a rebound in activity on Wall Street.
Here's what the company reported:
- Profits: $1.52 per share versus $1.39 per share forecast, according to LSEG
- Revenue: $20.14 billion versus the expected $20.07 billion
The bank said net income rose 10% from a year earlier to $3.22 billion, or $1.52 per share. Revenue rose 4% to $20.14 billion.
Equity trading revenue rose 37% to $1.5 billion, driven by strength in derivatives and an increase in hedge fund balances, about $300 million higher than StreetAccount's estimate.
Fixed-income revenue fell 3% to $3.6 billion, broadly in line with analysts' expectations, due to lower activity in the rates and currency markets.
Investment banking revenues rose 60% to $853 million, driven by strong investment-grade bond issuance and a rebound in IPO and merger activity from low levels in 2023.
The bank's shares fell more than 2% in early trading.
“Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup Chief Executive Jane Fraser said in the statement. “Markets finished the quarter strongly, leading to better performance than we had anticipated.”
Citigroup was reprimanded this week for failing to address its regulatory shortcomings, so analysts will be interested to ask Fraser about its longer-term efforts to address the problem.
Last year, Fraser announced plans to simplify the management structure and cut costs at the third-largest U.S. bank by assets. But profits will take a backseat if Citigroup fails to allay regulators' concerns about its data and risk management.
JPMorgan Chase announced the results early Friday, while Goldman Sachs, Bank of America and Morgan Stanley Report next week.
This story is developing. Please check back for updates.
Correction: This article has been updated to correct that Citigroup reported revenue of $20.14 billion for the second quarter. An earlier version incorrectly stated the figure due to a rounding error.
