Citigroup (C) Q2 2024 earnings

Citi Group on Friday Posted second-quarter results that beat expectations for earnings and revenue after a recovery in Wall Street activity.

This is what the company reported:

• Income: $1.52 per share versus $1.39 per share expected by LSEG
• Gain: $20.14 billion versus $20.07 billion expected

The bank said net profit rose 10% from a year earlier to $3.22 billion, or $1.52 per share. Revenue rose 4% to $20.14 billion.

Equity trading revenue rose 37% to $1.5 billion, driven by the strength of derivatives and a rise in hedge fund balances, about $300 million above the StreetAccount estimate.

Fixed income revenues fell 3% to $3.6 billion, essentially in line with analyst expectations, due to lower activity in the interest rate and currency markets.

Investment banking revenues rose 60% to $853 million, driven by strong investment-grade bond issuance and a recovery in IPOs and merger activity from low levels in 2023.

The bank’s shares fell almost 2%.

“Our results demonstrate the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup CEO Jane Fraser said in the release. “Markets finished the quarter strongly, leading to better performance than we expected.”

Citigroup was just this week reprimanded because it has failed to address regulatory shortcomings.

Last year, Fraser announced plans to simplify the management structure and reduce costs at the third-largest U.S. bank by assets. But profits will take a back seat if Citigroup cannot address regulators’ concerns about its data and risk management. a

JPMorgan Chase announced results earlier Friday, while Goldman Sachs, bank of America And Morgan Stanley report back next week.

Correction: This article has been updated to correct that Citigroup reported second-quarter revenue of $20.14 billion. In an earlier version, the figure was displayed incorrectly due to a rounding error.