Citigroup posts better-than-expected earnings and revenue, shares rise

Citigroup shares rose in premarket on Friday after the bank reported second-quarter earnings and revenue that topped expectations.

Here’s how the company fared in the quarter compared to what analysts polled by Refinitiv expected from the banking giant.

• Earnings per share: $1.33 vs. $1.30
• Revenue: $19.44 billion vs. $19.29 billion

Shares of Citigroup climbed more than 1% in premarket trading. The stock is up 5.4% year to date, outperforming the SPDR S&P Bank ETF (KBE), which is down 14.8%.

“Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said in a statement.

While beating Street estimates, Citi’s revenue dipped 1% from a year ago as the decline in markets and investment banking businesses weighed on the result.

Citigroup’s net income fell 6% to $2.9 billion from the same quarter last year, pressured by higher expenses, high cost of credit and lower revenue.

“Markets revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out,” Fraser said. “In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter.”

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