Citi CEO Jane Fraser speaks at the Milken Institute Global Conference in Beverly Hills, California on May 1, 2023.
Patrick T. Fallon AFP | Getty Images
Citigroup on Friday release Second-quarter results topped profit and revenue estimates as Wall Street activity rebounded.
Here’s what the company reports:
- income: $1.52 per share, vs. $1.39 expected, according to LSEG
- income: $20.14 billion vs. $20.07 billion expected
The bank said net profit rose 10% from a year earlier to $3.22 billion, or $1.52 per share. Revenue grew 4% to $20.14 billion.
Equity trading revenue rose 37% to $1.5 billion, about $300 million above StreetAccount’s forecast, driven by strength in derivatives and rising hedge fund balances.
Fixed income revenue fell 3% to $3.6 billion, largely in line with analysts’ expectations, due to lower interest rate and money market activity.
Investment banking revenue soared 60% to $853 million, driven by strong issuance of investment-grade debt and a rebound in IPO and M&A activity from low levels in 2023.
The bank’s shares fell nearly 2%.
“Our results demonstrate the progress we have made in executing our strategy and the strength of our diverse business model,” Citigroup’s chief executive said. Jane Fraser said the press release. “The market had a strong quarter and performed better than we expected.”
Citigroup just this week scold Failure to address its regulatory deficiencies.
Last year, Fraser announced plans to simplify the management structure and reduce costs at the nation’s third-largest bank by assets. But profits will take a backseat if Citigroup can’t quell regulators’ concerns about its data and risk management.
JPMorgan The results were announced early Friday, while Goldman Sachs, Bank of America and Morgan Stanley Report next week.
Correction: This article has been updated to correct that Citigroup reported second-quarter revenue of $20.14 billion. A previous version incorrectly stated this number due to a rounding error.
