Citigroup Reports Profit, Revenue Boost--Update
July 15 2019 - 8:45AM
Dow Jones News
By Telis Demos
Citigroup Inc. said Monday its second-quarter income rose 7%
from a year ago.
Quarterly profit was $4.8 billion, up from $4.49 billion a year
ago. Per-share earnings were $1.95. Analysts had expected $1.81 a
share.
Revenue at the bank was $18.76 billion, up 2% from $18.47
billion a year ago. Analysts polled by Refintiv had expected $18.5
billion.
Citigroup is the first of the big U.S. banks to report
second-quarter results. The New York bank and its rivals have been
under pressure in recent months. Tepid market volatility is hurting
trading desks. The Federal Reserve has signaled it is ready to cut
interest rates, which would likely hurt banks' lending
profitability.
Trading revenue at Citigroup was up 4%, to $4.11 billion. The
bank had forecast a single-digit decline across fixed-income and
equities trading.
Banks have warned that despite record stock markets, clients
have remained cautious, and weren't paying their banks to help them
put on big new bets.
Global consumer banking revenue at Citigroup rose by 3% to $8.51
billion. The bank has been focused on expanding its U.S. retail
banking presence, which trails its megabank peers, and improving
the return on its vast credit-card business.
The bank continued to slash costs. Expenses were down 2% to
$10.5 billion. Earlier this year, Chief Executive Michael Corbat
predicted investments in technology could improve efficiency by
about $500 million a year.
Citigroup shares have led major banks with a 38% gain so far in
2019. The broader KBW Nasdaq Bank index is up 16% this year.
Write to Telis Demos at telis.demos@wsj.com
(END) Dow Jones Newswires
July 15, 2019 08:30 ET (12:30 GMT)
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