Citigroup tops profit estimates as bank benefits from rising interest rates, shares surge 10%
Citigroup is scheduled to report second-quarter earnings before the opening bell Friday.
Here’s what Wall Street expects:
- Earnings per share: $1.68, according to Refinitiv
- Revenue: $18.22 billion, 4.2% higher than a year earlier, according to Refinitiv
- Trading Revenue: Fixed Income, $4.06 billion; Equities, $1.31 billion, according to StreetAccount
- Investment Banking: $922.8 million
Having a low stock price hasn’t protected Citigroup from further declines. It’s the cheapest of the six biggest U.S. banks from a valuation perspective, having declined 27% this year. On Thursday, Citigroup shares hit a fresh 52-week low.
How will Citigroup CEO Jane Fraser begin to turn the tide? Fraser has announced plans to exit retail banking markets outside the U.S. and set medium-term return targets in March. But there are no easy answers.
Bank stocks have been hammered this year over concerns that the U.S. is facing a recession, which would lead to a surge in loan losses. Like the rest of the industry, Citigroup is also contending with a sharp decline in investment banking revenue, partly offset by an expected boost to trading results in the quarter.
On Thursday, bigger rival JPMorgan Chase posted results that missed expectations as it built reserves for bad loans, and Morgan Stanley disappointed on a worse-than-expected slowdown in investment banking fees.
Bank of America and Goldman Sachs are scheduled to report results on Monday.
This story is developing. Please check back for updates.
- The Benefits of Meal Prepping for Busy Moms - October 28, 2023
- The 11 Best Cash ETFs in Canada (Plus HISA ETFs and Money Market ETFs) - October 8, 2023
- Build a Variety of Outfits with These 7 Affordable Pieces - October 7, 2023