Citigroup exceeded expectations for revenues and profits

Today, Citigroup (C), the fourth largest US bank in terms of assets, the first among the largest US banks, reported its revenues and profits that surpassed analysts’ expectations.

Citigroup compensated for the “tough macroeconomic environment” in global markets by earning profits from Tradeweb,

 

 lowering costs, buying back shares and improving performance in the consumer business.

Citigroup’s profit for the second quarter of fiscal 2019 was $ 4.79 billion, compared with a profit of $ 4.5 billion for the same period last year.

Earnings per share increased by 12% to $ 1.83, which is $ 0.02 above analysts’ forecast of $ 1.81.

Quarterly revenue of $ 18.76 billion is 13% higher than last year’s value of $ 18.5 billion and above the analytical forecast of $ 18.49 billion.

Citigroup quarterly report details

Income from consumer banking grew by 3% to $ 8.51 billion, but turned out to be lower than analysts’ forecast of $ 8.58 billion.

Institutional client unit revenues increased to $ 9.72 billion from $ 9.70 billion last year, exceeding expectations of $ 9.61 billion.

Citigroup made a pre-tax profit of $ 350 million from the IPO of the electronic trading platform Tradeweb.

The revenues of the fixed income division increased by 8% to $ 3.32 billion, but excluding the Tradeweb deal, the bank would have shown a decrease in this division by 4%.

Income from investment banking fell by 10% to $ 1.28 billion. Revenue from non-IPO trading operations fell by 5%, falling income from trading in shares was 9% to $ 790 million

Revenue from advising on mergers and acquisitions fell by 36%.

The second quarter showed progress in cost reduction: they decreased by 2% to $ 10.5 billion, which is almost $ 100 million lower than the average for analysts.

“We have successfully passed through an uncertain environment, following our strategy and demonstrating disciplined spending, credit and risk management. We have a good momentum and steady growth throughout our consumer franchise, especially in the US, ”said CEO Michael Corbat, commenting on the report.

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