Citigroup tops estimates as trading revenues offset banking slowdown
Major US lender Citigroup posted better-than-expected second-quarter earnings on Tuesday as a surge in trading revenues helped offset a slowdown in its banking unit.
Citigroup Inc.
$61.79
11:10 25/04/24
Citigroup reported earning per share of $0.50 as revenues rose 4% year-on-year to $19.77bn - ahead of forecasts of $0.28 and $19.12bn, respectively.
Revenues of $5.6bn in the fixed income, currency and commodities trading side of the business well and truly topped expectations of $4.86bn.
However, total net income was 73% lower on the year at $1.3bn, driven by a substantially higher allowance for credit loss reserves due to the Covid-19 pandemic-fuelled recession.
Chief executive Michael Corbat said: "While credit costs weighed down our net income, our overall business performance was strong during the quarter, and we have been able to navigate the Covid-19 pandemic reasonably well."
As of 1330 BST, Citigroup shares were up 1.72% in pre-market trading at $53.10 each.