Citi CEO Jane Fraser speaks at the Milken Institute Global Conference in Beverly Hills, California on May 1, 2023.
Patrick T. Fallon | AFP | Getty Images
Citigroup on friday Posts Second-quarter results beat profit and revenue expectations as activity on Wall Street picked up.
Here’s what the company reported:
- Revenue: LSEG said the expected price was $1.52 per share, compared with $1.39 per share.
- Revenue: $20.14 billion (forecast: $20.07 billion)
The bank said net income rose 10% year over year to $3.22 billion, or $1.52 per share. Revenue rose 4% to $20.14 billion.
Equity trading revenue rose 37% to $1.5 billion, driven by strong derivatives and rising hedge fund balances, beating estimates from Street accounts by about $300 million.
Fixed income revenue fell 3 percent to $3.6 billion, roughly in line with analysts’ expectations, due to weak interest rate and currency markets.
Investment banking revenues surged 60% to $853 million, driven by strong investment-grade bond issuance and a recovery in IPO and merger activity from lows in 2023.
The bank’s shares fell nearly 2%.
“Our results demonstrate the progress we are making in executing on our strategy and the benefits of our diversified business model,” Citigroup CEO Jane Fraser said in a statement. “Markets ended the quarter strong and delivered better than expected results.”
Citigroup this week Reprimanded Failure to correct regulatory deficiencies.
Fraser last year unveiled plans to streamline the management structure and cut costs at the third-largest U.S. bank by assets, but profits could take a back seat if Citigroup can’t allay regulators’ concerns about its data and risk management.
JPMorgan Chase The results were announced on Friday, Goldman Sachs, Bank of America and Morgan Stanley I will report next week.
Correction: This story has been updated to correct that Citigroup reported second-quarter revenue of $20.14 billion. An earlier version misstated the figure due to a rounding error.
