Citigroup First-quarter revenue reported on Friday beat analysts’ expectations, helped by better-than-expected results from the bank’s investment banking and trading businesses.
Here’s how company executionwith estimates from LSEG (formerly Refinitiv):
- Earnings per share: Adjusted $1.86 per share, compared with $1.23 expected
- Revenue: $21.1 billion, $20.4 billion expected
The bank said profit fell 27% from a year earlier to $3.37 billion, or $1.58 a share, due to higher fees and credit costs. Citigroup earned $1.86 per share, after adjusting for FDIC charges and the impact of restructuring and other costs, according to LSEG calculations.
Revenue fell 2% to US$21.1 billion, mainly affected by the sale of overseas operations in the same period last year.
Investment banking revenue jumped 35% to $903 million in the quarter, driven by higher debt and equity issuance, beating StreetAccount’s forecast of $805 million.
Fixed-income trading revenue fell 10% to $4.2 billion, exceeding expectations of $4.14 billion; equity revenue rose 5% to $1.2 billion, exceeding expectations of $1.12 billion.
The bank’s services segment revenue, which includes operations that serve corporate banking needs around the world, also rose 8% to $4.8 billion on higher deposits and fees.
The bank’s shares fell 2% after earlier gains.
Citigroup Chief Executive Jane Fraser previously said a comprehensive corporate overhaul would be completed in March and the company would provide an update on severance pay alongside first-quarter results.
“The last month marked the end of the organizational simplification efforts we announced in September,” Fraser said in the earnings release. “The result is a cleaner, simpler management structure that fully aligns with and facilitates our strategy.
Last year, Fraser announced plans to simplify the management structure and reduce costs at the nation’s third-largest bank by assets. The bank on Friday reiterated its medium-term targets for returns of at least 11% this year and revenue of at least $80 billion.
JPMorgan Results were reported early Friday, and Goldman Sachs reported on Monday.
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