Citigroup has beaten expectations with its latest trading statement, causing its share price to jump more than three per cent last night despite a $7bn fine (£4.1bn).
The penalty will be paid to US authorities to settle an investigation into claims that the bank misled investors about mortgage-backed securities in the run up to the financial crisis.
The bank announced adjusted income of $1.24 per share yesterday, above the $1.05 forecast. Trading revenues were down but not as much as had been expected. Revenue from capital markets was also reduced, down 16 per cent on last year.
Of the fine, Citigroup chief executive Michael Corbat said: “We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past.”