Citigroup (C) earnings Q2 2024

Citigroup (C) earnings Q2 2024
Business

Jane Fraser, CEO of Citi, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 1, 2023. 

Patrick T. Fallon | AFP | Getty Images

Citigroup on Friday posted second-quarter results that topped expectations for profit and revenue on a rebound in Wall Street activity.

Here’s what the company reported:

  • Earnings: $1.52 a share vs. $1.39 a share expected, according to LSEG
  • Revenue: $20.14 billion vs. $20.07 billion expected

The bank said net income jumped 10% from a year earlier to $3.22 billion, or $1.52 a share. Revenue rose 4% to $20.14 billion.

Equities trading revenue rose 37% to $1.5 billion, driven by strength in derivatives and a rise in hedge fund balances, roughly $300 million more than the StreetAccount estimate.

Fixed income revenue dipped 3% to $3.6 billion, essentially matching analysts’ expectations, on lower activity in rates and currency markets.

Investment banking revenue surged 60% to $853 million, driven by strong issuance of investment-grade bonds and a rebound in IPO and merger activity from low levels in 2023.

Shares of the bank fell nearly 2%.

“Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup CEO Jane Fraser said in the release. “Markets had a strong finish to the quarter leading to better performance than we had anticipated.”

Citigroup was just this week rebuked for failing to fix its regulatory shortfalls.

Last year, Fraser announced plans to simplify the management structure and reduce costs at the third-biggest U.S. bank by assets. But earnings will take a backseat if Citigroup cannot appease regulators’ concerns about its data and risk management.  

JPMorgan Chase announced results earlier Friday, while Goldman Sachs, Bank of America and Morgan Stanley report next week.

Correction: This article has been updated to correct that Citigroup reported revenue of $20.14 billion for the second quarter. A previous version misstated the figure due to a rounding error.

Read the original article here

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