Citigroup Tops Q2 Profit Estimates
Jul 15, 2022 By MarketDepth
Citigroup (C:NYSE) tops second-quarter profit estimates in part to rising interest rates and trading results. With four other banks reporting earnings this week only Citigroup topped estimates causing the stock to surge over 10% intraday.
“In a challenging macro and geopolitical environment, our team delivered solid results and we are in a strong position to weather uncertain times, given our liquidity, credit quality and reserve levels.”Citigroup CEO Jane Fraser
With analyst expectations being topped the earnings per share were $2.19 vs. $1.68 expected and revenue accounted to $19.64 billion vs. $18.22 billion expected.
Citigroup did join JPMorgan on pausing share buybacks due to the Federal Reserve stress test that left some banks without proper capital due to the stringent requirements.This allows them to stockpile cash reserves to help fulfil the requirements.
Citigroup saw a jump of 11% in institutional client revenue to $11.4 billion. Fixed income revenue surged 31% to $4.1 billion and equities trading rose 8% as well.