Pedestrians pass by a Citibank branch in Washington, DC
Andrew Harrer | Bloomberg | fake pictures
Citigroup reported second-quarter results on Tuesday that beat analysts’ expectations thanks in part to a massive surge in business revenue that helped offset a slowdown in the company’s consumer banking business.
This is how the company’s results are compared with analyst estimates:
- Earnings: 50 cents a share vs. 28 cents a share expected by Refinitiv
- Revenue: $ 19.77 billion vs. $ 19.12 billion forecast
- Fixed Income, Foreign Exchange and Commodity Trading Income: $ 5.6 billion vs. $ 4.86 billion forecast by FactSet
Citigroup’s fixed-income business revenue represents a 68% year-over-year increase and accounted for the majority of the company’s Markets and Securities Services revenue, which increased 48% to $ 6.9 billion.
Those high trade numbers come amid increased market volatility during the coronavirus pandemic. They also come immediately after the massive monetary stimulus from the Federal Reserve. However, stock trading revenue fell 3% to $ 770 million.
Citigroup shares have risen nearly 12% in the past three months through Monday’s close, their best-performing peers such as JPMorgan Chase, Wells Fargo and Bank of America. JPMorgan and Bank of America were more or less flat at the time and Wells lost 19.2%.
The bank announced in late June that it would maintain its quarterly dividend after passing the Federal Reserve’s annual stress test.
“While we will continue to evaluate our planned capital actions against the latest financial and macroeconomic conditions, we believe we are well positioned to continue supporting our clients and the economy as a whole,” CEO Michael Corbat said last month.
Citigroup’s results on Tuesday will come in what is expected to be the worst earnings season on Wall Street. Analysts polled by Refinitiv expect S&P 500 earnings to have fallen 44% year-over-year.
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