Citigroup tops profit estimates as bank benefits from rising interest rates, shares pop 4% - 15 iulie 2022
Citigroup on Friday posted second-quarter results that beat analysts’ expectations for profit and revenue as the firm benefited from rising interest rates and strong trading results. Here’s what the bank reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Earnings per share: $2.19 vs $1.68 expected
Revenue: $19.64 billion vs $18.22 billion expected Shares of the bank rose 4.9% in premarket trading.
Profit declined 27% to $4.55 billion, or $2.19 per share, from $6.19 billion, or $2.85, a year earlier, the New York-based bank said in a statement. That handily exceeded expectations for the quarter as analysts have been slashing earnings estimates for the industry in recent weeks.
Revenue rose a bigger-than-expected 11% in the quarter to $19.64 billion, more than $1 billion over estimates, as the bank reaped more interest income and saw strong results in its trading division and institutional services business.
Of the four major banks to report second-quarter results this week, only Citigroup topped expectations for revenue.
Having a low stock price hasn’t protected Citigroup from further declines this year. It’s the cheapest of the six biggest U.S. banks from a valuation perspective, having declined 27% in 2022. On Thursday, Citigroup shares hit a fresh 52-week low.
(US.C)