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Citigroup beats analysts' forecasts, upbeat on outlook

By Alexander Bueso

Date: Wednesday 14 Jul 2021

Citigroup beats analysts' forecasts, upbeat on outlook

(Sharecast News) - US banking giant Citigroup posted better-than-expected results for the second quarter, despite a shrinking topline.
The lender reported a jump in net profits from $1.06bn or 38 cents per share a year earlier to $6.19bn or $2.85 (FactSet: $1.97) for the three months to June.

Revenues on the other hand shrank by 12% to $17.47bn (FactSet: $17.22bn).

Nevertheless, said Citi chief Jane Fraser: "The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising.

"We saw this across our businesses, as reflected in our performance in Investment Banking and Equities as well as markedly increased spending on our credit cards. While we have to be mindful of the unevenness in the recovery globally, we are optimistic about the momentum ahead."

Dragging on Citi's topline was the "normalisation" seen in financial market activity as reflected in the lender's Fixed Income Markets unit, which resides within the Institutional Clients Group.

ICG revenues were down 14% to roughly $10.39bn.

Lower interest rates were another drag, the lender said in a statement, and lower average card loans weighed on Citi's Global Consumer Banking arm alongside.

CBG revenues were down by 7% from their year earlier level at $6.82bn.

Earnings per share meanwhile benefitted from a "slight" decline in the number of shares outstanding.

Citi's common equity tier one capital ratio improved by four tenths of a percentage point to 11.9%.

In response, as of 1722 BST shares of Citigroup were trading down by 0.83% to $67.80.



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