Citigroup released its second quarter results, which benefited from a $ 1.1 billion increase from the release of reserves the bank had previously set aside for loan losses.
This is how the bank did it:
Merits: $ 2.85 per share, beating the estimate of $ 1.96 by analysts surveyed by Refinitiv.
revenue: $ 17.47 billion, beating the estimate of $ 17.2 billion.
While the bank managed to beat revenue expectations, the number was down 12% year over year due to lower results in bond trading, declining credit card loans, and falling interest rates.
But the company’s profits rose after it released reserves for loan losses, resulting in a profit of $ 1.1 billion after $ 1.3 billion in write-offs. A year ago, the bank had to set aside billions for expected loan losses, resulting in borrowing costs of $ 8.2 billion.
The bank’s share climbed 1.1% according to the earnings report.
Jane Fraser, who officially became CEO in February, announced in April that Citigroup is closing down retail operations in 13 countries outside the United States in an effort to improve returns. Now analysts are wondering what else Fraser has planned for their strategic reorganization of Citigroup, the third largest US bank by assets.
Citigroup’s stock is up 11% through Wednesday this year, compared with the KBW Bank Index’s 26% increase.
On Tuesday, JPMorgan Chase and Goldman Sachs each released results that exceeded expectations, aided by strong revenues from Wall Street advisory activities.
This story evolves. Please check again for updates.
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