Citigroup on Friday, it reported first-quarter revenue that topped analyst estimates, helped by better-than-expected leads to its investment banking and trading businesses.
Here’s how the corporate madein comparison with estimates from LSEG, formerly referred to as Refinitiv:
- Earnings: $1.86 per share, adjusted, versus $1.23 expected
- Revenue: $21.10 billion vs. expected $20.4 billion
The bank said profit fell 27% from a 12 months earlier to $3.37 billion, or $1.58 per share, attributable to higher expenses and borrowing costs. After making an allowance for the impact of FDIC charges in addition to restructuring and other costs, LSEG calculated that Citi earned $1.86 per share.
Revenue fell 2% to $21.10 billion, mainly attributable to the sale of a foreign business within the prior 12 months.
Investment banking revenue rose 35% to $903 million within the quarter, driven by growing debt and equity issuance, topping StreetAccount estimates of $805 million.
Fixed-income revenues fell 10% to $4.2 billion, beating estimates of $4.14 billion, and equities revenues increased 5% to $1.2 billion, beating estimates of $1.12 billion dollars.
The bank also saw an 8% increase to $4.8 billion in revenue in its services division, which incorporates firms that meet the banking needs of world corporations through rising deposits and charges.
The bank’s shares fell 2% after earlier gains.
Citigroup CEO Jane Fraser previously said her company’s major overhaul can be accomplished by March and that the corporate would supply an update on severance costs with its first-quarter results.
“Last month saw the completion of the organizational simplification that we announced in September,” Fraser said in the outcomes announcement. “The result’s a cleaner and simpler management structure that’s fully aligned with and facilitates our strategy.
Last 12 months, Fraser announced plans to simplify the management structure and cut costs on the third-largest U.S. bank by assets. On Friday, the bank maintained its medium-term goals for a return of at the very least 11% and generating revenue of at the very least $80 billion this 12 months.
JPMorgan Chase announced the outcomes earlier on Friday and Goldman Sachs reports on Monday.
Credit : www.cnbc.com
