Citigroup C Q2 earnings report 2023
Citigroup shares rose in premarket trading on Friday after the bank reported second-quarter earnings and revenue that beat expectations.
Despite the pace, Citi’s revenue fell 1% from a year ago as the slowdown in markets and investment banking weighed on results. Citi said the uncertain macro environment and low volatility impacted client activity and market performance.
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“Against a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said in a statement.
Here’s how the company fared in the quarter compared to what analysts polled by Refinitiv expected from the banking giant.
- Earnings per share: $1.33 vs. $1.30
- Revenue: $19.44 billion vs. $19.29 billion
Citigroup’s net income fell 6% to $2.9 billion, or $1.33 a share, from $4.5 billion, or $2.19 a share, last year, pressured by higher expenses, high credit costs and lower revenue.
“The market’s revenue was down from a strong second quarter last year, as customers stood on the sidelines from April as the US debt ceiling played out,” Fraser said. “In Banking, the long-awaited recovery in Investment Banking has yet to materialize, making for a disappointing quarter.”
On the bright side, personal banking and wealth management revenue rose 6% in the quarter to $6.4 billion, driven by strong loan growth.
Citi returned a total of $2 billion to shareholders through joint dividends and share buybacks in the second quarter.
Shares in Citigroup rose more than 1% in premarket trading. The stock is up 5.4% so far this year, and has outperformed SPDR S&P Bank ETF (KBE), which is down 14.8%.
Read the results report here.
