Citigroup released second quarter results that benefited from a $ 1.1 billion increase from the release of reserves for loan losses.
This is how the bank did it:
Earnings: $ 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.
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.
Like the rest of the industry, Citigroup is expected to release some of the money it previously allocated for expected defaults related to the coronavirus pandemic. The company could also benefit from strong advisory activity on Wall Street during the quarter.
Citigroup’s stock is up 11% this year, compared to 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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