Citigroup on Friday posted first-quarter revenue that topped analysts’ estimates, helped by better-than-expected ends in the bank’s investment banking and trading operations.
Here’s how the company performed, compared with estimates from LSEG, formerly often called Refinitiv:
- Earnings: $1.86 per share, adjusted, vs. $1.23 expected
- Revenue: $21.10 billion vs. $20.4 billion expected
The bank said profit fell 27% from a 12 months earlier to $3.37 billion, or $1.58 a share, on higher expenses and credit costs. Adjusting for the impact of FDIC charges in addition to restructuring and other costs, Citi earned $1.86 per share, in line with LSEG calculations.
Revenue slipped 2% to $21.10 billion, mostly driven by the impact of selling an overseas business within the year-earlier period.
Investment banking revenue jumped 35% to $903 million within the quarter, driven by rising debt and equity issuance, topping the $805 million StreetAccount estimate.
Fixed income trading revenue fell 10% to $4.2 billion, edging out the $4.14 billion estimate, and equities revenue rose 5% to $1.2 billion, topping the $1.12 billion estimate.
The bank also posted an 8% gain to $4.8 billion in revenue in its Services division, which incorporates businesses that cater to the banking needs of world corporations, because of rising deposits and charges.
Shares of the bank fell 2% after posting gains earlier.
Citigroup CEO Jane Fraser previously said that her sweeping corporate overhaul could be complete by March, and that the firm would give an update to severance expenses together with first-quarter results.
“Last month marked the top to the organizational simplification we announced in September,” Fraser said within the earnings release. “The result’s a cleaner, simpler management structure that fully aligns to and facilitates our strategy.
Last 12 months, Fraser announced plans to simplify the management structure and reduce costs on the third-biggest U.S. bank by assets. The bank on Friday reiterated its medium term targets for returns hitting no less than 11% and generating no less than $80 billion in revenue this 12 months.
JPMorgan Chase reported results earlier Friday, and Goldman Sachs reports on Monday.
