![Citigroup posts better-than-expected earnings and revenue Citigroup posts better-than-expected earnings and revenue](https://image.cnbcfm.com/api/v1/image/107271699-16893373221689337318-30298032565-1080pnbcnews.jpg?v=1689337635&w=750&h=422&vtcrop=y)
Citigroup on Friday reported second-quarter earnings and revenue that beat expectations.
Despite the pace, Citi’s revenue fell 1% from a year ago as declines in markets and investment banking business weighed on its results. Citi said the uncertain macroeconomic environment and low volatility impacted client activity and market performance.
“In a challenging macroeconomic environment, 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 New York-based lender fared in the quarter compared to what analysts polled by Refinitiv expected of the banking giant.
- Earnings per share: $1.33 vs. $1.30
- Revenue: $19.44 billion vs. $19.29 billion
Citigroup’s net profit fell 36% to $2.9 billion, or $1.33 per share, from $4.5 billion, or $2.19 per share, last year under pressure rising expenses, high cost of credit and falling income.
“Markets revenue was down from a strong second quarter last year as clients were sidelined from April as the US debt limit played out,” Fraser said. “In banking, the long-awaited rebound in investment banking has yet to materialize, leading to a disappointing quarter.”
On the positive side, retail 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 in the form of ordinary dividends and share buybacks in the second quarter.
Citigroup shares fell 4% on Friday. The stock is up more than 1% since the start of the year, outperforming the SPDR S&P Bank ETF (KBE), which is down about 12%.
Read the earnings release here.
Fix: Citigroup net profit fell 36% year over year. A previous version distorted the percentage.