Citigroup First-quarter earnings reported Friday beat analysts’ estimates, helped by better-than-expected results from the bank’s investment banking and trading operations.
Here’s how the company has completedCompared to estimates from LSEG, formerly known as Refinitiv:
- Earnings: $1.86 per share (adjusted), vs. expected $1.23.
- Revenue: $21.10 billion versus expected $20.4 billion.
The bank said profit fell 27% from a year earlier to $3.37 billion, or $1.58 per share, due to higher costs and borrowing costs. After adjusting for 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 sale of overseas businesses in the prior year.
Investment banking revenue for the quarter jumped 35% to $903 million, driven by higher debt and equity issuance, beating StreetAccount’s estimate of $805 million.
Fixed income trading revenue fell 10% to $4.2 billion, beating estimates of $4.14 billion, while equity trading revenue rose 5% to $1.2 billion, beating estimates of $1.12 billion.
The bank also reported an 8% rise in revenue to $4.8 billion in its services division, which includes businesses serving the banking needs of global corporations, thanks to growth in deposits and fees.
The bank’s shares fell 2% after reporting earlier gains.
Citigroup CEO Jane Fraser previously said its sweeping corporate overhaul would be completed by March and that the firm would provide an update on exit costs along with its first-quarter results.
“The past month marked the end of the organizational simplification we announced in September,” Fraser said in the earnings 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 US bank by assets. On Friday, the bank reaffirmed its medium-term goals of yielding at least 11% and generating at least $80 billion in revenue this year.
JP Morgan Chase reported the results earlier on Friday, and Goldman Sachs reports on Monday.