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Citigroup earnings Q2 2019



Citigroup beat analysts' earnings and revenue gains from the original public bond trading platform Tradeweb offer.

The bank made a profit of $ 4.79 billion, or $ 1.95 per share, compared to the $ 1.80 estimate of analysts surveyed by Refinitiv. With the exception of the effect of the IPO, the bank would have earned $ 1.83 per share in profits, driven by lower taxes and a reduction in the number of shares outstanding.

Stocks rose 0.7% in market trading at 8:30 am in New York.

While earnings per share increased by 20% in the quarter, the company's revenue gain was more subdued on the decline in trading and investment bank revenue revenues and loan loss losses, the bank said. Revenue climbed 2% to $ 1

8.76 billion, exceeding the $ 18.5 billion estimate, driven by a $ 350 million pretax gain on Tradeweb IPO, the bank said.

"We successfully named an unsafe environment by executing our strategy and by showing disciplined costs, credit and risk management," says CEO Michael Corbat in the revenue release.

Citigroup is the first of the major US banks to report the result for other quarters, so investors are eager to see how the banking and trading activities performed during the period.

Last month, CFO Mark Mason said at a conference that quarterly trading revenues would likely fall by a "mid-one-digit" percentage from a year ago.

It turned out to be accurate, as trading revenues excluding the IPO fell 5% on a 9% decline in stock trading revenue to $ 790 million, while fixed income grew by 8% to $ 3.32 billion, but In addition to the Tradeweb transaction, the bank would have dropped a 4% decline in that division, while investment bank revenues fell 10% to $ 1.28 billion.

New York Stock Shares rte banks have increased 38% so far this year, compared with the KBW Bank's 16% index.

Other banks should also benefit from IPO of Tradeweb, which considered the largest US banks, including Goldman Sachs and Bank of America as investors. Tradeweb, founded in 1996, was published in April in what was then the second largest IPO of the year.

This is what Wall Street expected:

  • Earnings: $ 1.80 per share, 11% more than the year before, according to Refinitiv
  • Revenue: $ 18.5 billion, almost unchanged from the previous year.
  • Trading revenue: Fixed income: $ 2.98 billion, shares: $ 811 million, according to the Factset
  • Efficiency: 57.3, according to the Factset

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