Citi Group The group on Friday reported first-quarter revenue above analyst estimates, helped by better-than-expected results in the bank’s investment banking and trading operations.
Here’s how the company performed, compared to estimates from LSEG, formerly known as Refinitiv:
- Earnings: $1.86 per share, adjusted, versus $1.23 expected
- Revenue: $21.10 billion versus $20.4 billion expected
The bank said its profit fell 27% year-on-year to $3.37 billion, or $1.58 per share, due to higher expenses and credit costs. Factoring in the impact of FDIC fees as well as restructuring and other costs, Citi earned $1.86 per share, according to LSEG calculations.
Revenue fell 2% to $21.10 billion, mainly due to the impact of the sale of an overseas business in the year-ago period.
Revenue at the investment bank jumped 35% to $903 million in the quarter, driven by increased debt and equity issuance, beating StreetAccount’s estimate of $805 million.
Fixed-income trading revenue fell 10% to $4.2 billion, beating the estimate of $4.14 billion, and equity revenue rose 5% to $1.2 billion. dollars, surpassing the estimate of $1.12 billion.
The bank also reported an 8% gain to $4.8 billion in revenue in its Services division, which includes businesses that serve the banking needs of global businesses, driven by increased deposits and fees .
The bank’s shares were down less than 1% in early trading.
Citigroup CEO Jane Fraser previously said the company’s radical overhaul would be completed by March and the company would provide an update on severance packages as well as first-quarter results.
“Last month marked the end of the organizational simplification that we announced in September,” Fraser said in the results release. “The result is a cleaner, simpler management structure that fully aligns with and facilitates our strategy.
Last year, Fraser announced plans to simplify the management structure and cut costs at the third-largest U.S. bank by assets. Now, analysts want to know whether Citigroup can maintain its previous forecasts for full-year revenue and spending targets.
JPMorgan Chase announced the results earlier Friday, and Goldman Sachs reports Monday.
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