US bank Citigroup has reported an 11 per cent increase in adjusted second quarter revenues ($20bn) and earnings per share of $1.25, smashing expectations.
Analysts had predicted revenues of $19.76bn and earnings per share of $1.18, and Citi’s stocks jumped nearly three per cent on the news.
The bank has embarked on an aggressive cost cutting mission, firing thousands of workers and scaling back assets and operations, and it looks finally to be paying off.
Michael Corbat, chief executive of Citi, said:
Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged. We also continued to make progress in several critical areas. We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010. We again consumed a modest amount of DTA, bringing the total utilized to about $1.3 billion for the first half of the year. We increased our already strong capital levels, reaching an estimated Basel III Tier 1 Common ratio of 10%. Generating consistent and quality earnings is a key priority and this quarter met that goal.