Jane Fraser, chief executive of Citi, says she is convinced that Europe will fall into recession as it grapples with the impact of the war in Ukraine and the resulting energy crisis.
Patrick T. Fallon | AFP | Getty Images
City Group On Friday, it released second-quarter results that beat analysts’ expectations for earnings and revenue as the company benefited from higher interest rates and strong trading results.
Here’s what the bank reported compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.19 vs. $1.68 expected
- Revenue: $19.64 billion vs. $18.22 billion forecast
The bank’s shares rose 4.9% in pre-market trading.
The New York-based bank said earnings fell 27% to $4.55 billion, or $2.19 per share, from $6.19 billion, or $2.85, a year ago. statement. This easily beat expectations for the quarter as analysts cut earnings estimates for the industry in recent weeks.
Revenues rose 11% more than expected in the first quarter to $19.64 billion, more than $1 billion more than estimates, as the bank earned more interest income and saw strong results in its trading and institutional services business.
Among the big four banks that will report second-quarter results this week, Citigroup has exceeded revenue expectations.
“In a challenging macro and geopolitical environment, our team has delivered solid results and we are in a strong position to weather uncertain times, given our liquidity, credit quality and reserve levels,” Citigroup CEO Jane Fraser said in the statement.
It noted that corporate cash management, Wall Street trading and consumer credit cards performed well in the quarter.
Banking stocks have been hit hard this year on fears that the United States is facing a recession, which could lead to a spike in loan losses. Like the rest of the industry, Citigroup is also facing a sharp decline in investment banking revenue, offset by strengthening trading results in the quarter.
Despite Friday’s stock gains, Citigroup remains the cheapest of the Big Six US banks from a valuation perspective. The stock was down 27% in 2022, to Thursday’s close, when its shares hit a 52-week low.
To help turn the company around, Fraser has announced plans to exit the retail banking markets outside the United States and determine the mid-term Return goals in March.
Thursday, the biggest contender c. B. Morgan Chase Published results that lost expectations It also built reserves for bad loans, and Morgan Stanley Disappointed at worse than expected Slower in investment banking fees.
This story is developing. . Please check back for updates
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”