Citigroup joined JP Morgan Chase in beating expectations with its second quarter earnings today. Trading held up reasonably well, while loans grew.
The US bank’s revenue for the period came in at $17.9bn, up from $17.5bn in the same period last year and even further ahead of the $17.4bn expected by analysts.
The firm’s net income was down from $4bn this time last year to $3.9bn, with Citi pointing to higher costs of credit and operating expenses.
But its earnings per share of $1.28 were above analysts’ expectations ($1.21) and last year’s $1.24.
Why it’s interesting
JP Morgan also beat its expectations earlier today, despite low volatility sending trading revenues down 14 per cent.
Citi’s trading revenue held up better. Fixed-income trading turnover fell six per cent, while equity trading revenue was down 11 per cent.
The firm performed well in loans, which totalled $645bn at the end of the quarter, up two per cent year-on-year.
What Citi said
Chief executive Michael Corbat said:
During the quarter, we saw continued momentum in our businesses, with loan and revenue growth across both sides of the house. Our global consumer bank posted revenue growth in all three regions. Our institutional clients group had a very strong quarter all-around, including its best investment banking performance in seven years.