Citigroup posted second-quarter results that benefited from a $1.1 billion boost from releasing reserves set aside for loan losses.
Here’s how the bank did:
Earnings: $2.85 a share, topping the $1.96 estimate of analysts surveyed by Refinitiv.
Revenue: $17.47 billion, edging out the $17.2 billion estimate.
While the bank managed to top expectations for revenue, the figure declined 12% from a year earlier, driven by lower results in fixed income trading, falling credit card loans and dropping interest rates.
But the firm’s earnings jumped after it released reserves set aside for loan losses, resulting in a $1.1 billion benefit after $1.3 billion in charge-offs. A year ago, the bank had been forced to set aside billions for expected credit losses, resulting in an $8.2 billion credit cost.
Shares of the bank climbed 1.1% after the earnings report.
Jane Fraser, who officially became CEO in February, announced in April that Citigroup was exiting retail operations in 13 countries outside the U.S. to improve returns. Now, analysts wonder what else Fraser has planned for her strategic revamp of Citigroup, the third biggest U.S. bank by assets.
Shares of Citigroup have climbed 11% this year before Wednesday, compared with the 26% advance of the KBW Bank Index.
On Tuesday, JPMorgan Chase and Goldman Sachs each posted results that beat expectations, helped by strong revenue from Wall Street advisory activities.
This story is developing. Please check back for updates.
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