Citigroup (C) Q1 2024 earnings

Citi Group posted first-quarter revenue on Friday that exceeded analyst expectations, helped by better-than-expected results in the bank’s investment banking and trading businesses.

Here’s how the company carried outcompared to estimates from LSEG, formerly known as Refinitiv:

• Earnings: $1.86 per share, adjusted, versus $1.23 expected
• Revenue: $21.10 billion versus $20.4 billion expected

The bank said profit fell 27% from a year earlier to $3.37 billion, or $1.58 per share, due to higher expenses and credit costs. Adjusted for the impact of FDIC charges and 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 impact of the sale of an overseas business in the prior-year period.

Investment banking revenue rose 35% to $903 million in the quarter, driven by rising debt and equity issuance, surpassing the StreetAccount estimate of $805 million.

Fixed income trading revenue fell 10% to $4.2 billion, beating the $4.14 billion estimate, and equities revenue rose 5% to $1.2 billion, beating the $1 billion estimate. .12 billion exceeded.

The bank also posted an 8% revenue gain to $4.8 billion in its Services division, which includes companies that serve the banking needs of global corporations, thanks to rising deposits and fees.

The bank’s shares fell 2% after earlier posting gains.

Citigroup CEO Jane Fraser previously said its major business overhaul would be completed by March and the company would provide an update on layoff costs along with first-quarter results.

“Last 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 reduce costs at the third-largest U.S. bank by assets. The bank reiterated its medium-term targets on Friday: a return of at least 11% and revenue of at least $80 billion this year.

JPMorgan Chase reported results earlier Friday, and Goldman Sachs reports Monday.