Citigroup’s second-quarter results topped Wall Street expectations, giving investors crushed to anticipation for a turnaround nether Chief Executive Jane Fraser.
Citigroup (ticker: C) posted net of $6.2 billion, oregon $2.85 per share, connected gross of $17.5 billion. Analysts surveyed by FactSet were expecting net of $1.97 per stock connected gross of $17.2 billion. In the year-ago quarter, the slope earned $1.06 billion, oregon 38 cents a share, connected $19.8 cardinal successful gross arsenic it acceptable speech astir $6 cardinal successful reserves successful anticipation of a question of defaults owed to the coronavirus pandemic. Instead, this quarter, the slope released $2.4 cardinal successful reserves arsenic economical conditions improved.
Citigroup shares precocious 1.6% successful premarket trading.
Fraser noted the quicker-than-expected gait of the planetary economical recovery, coupled with expanding user and firm assurance erstwhile discussing the bank’s results.
“While we person to beryllium mindful of the unevenness successful the betterment globally, we are optimistic astir the momentum ahead,” Fraser said.
Like different banks that reported results earlier this week, Citigroup saw its gross alteration owed to a drop disconnected successful trading activity. Total gross successful the bank’s trading part fell 30% twelvemonth implicit year, with a 43% driblet successful fixed income trading and a 37% summation successful equities trading.
Citigroup’s user banking portion saw a 10% driblet successful revenue, reflecting little paper balances and little deposit spreads. That portion besides saw a 7% summation successful expenses.
In summation to Citigroup’s results, investors are paying adjacent attraction to the bank’s efforts to amended its operations aft being slapped with a consent bid past twelvemonth for anemic interior controls.
Citigroup is 1 of the past large banks to station results this week pursuing reports from JPMorgan Chase (JPM) and Goldman Sachs (GS) connected Tuesday. Bank of America (BAC) and Wells Fargo (WFC) also reported results connected Wednesday. Morgan Stanley (MS) reports results connected Thursday.
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