Banking, finance, and taxes
Does Citigroup Deserve More Credit for This Bottom-Line Beat?
Published:
Last Updated:
Citigroup Inc. (NYSE: C) released its second-quarter financial results before the markets opened on Monday. The bank said that it had $1.95 in earnings per share (EPS) and $18.76 billion in revenue, which compares with consensus estimates of $1.81 in EPS and revenue of $18.49 billion. In the same period of last year, the bank said it had EPS of $1.63 and $18.47 billion in revenue.
Citigroup’s end-of-period loans were $689 billion as of quarter’s end, up 3% from the prior-year period. The end-of-period deposits were $1.0 trillion, an increase of 5%.
Book value per share was $79.40, and tangible book value per share was $67.64, both as of quarter’s end. Each increased 10% from the prior year, driven by net income and the lower share count. It’s worth pointing out that Citigroup’s buybacks have reduced common shares outstanding by 10% over the past year alone.
In terms of its segments, the bank reported as follows:
- Global Consumer Banking revenue increased 3% year over year to $8.51 billion.
- Institutional Clients Group revenue remained flat at $9.72 billion.
- Corporate/Other revenue increased 1% to $532 million.
Michael Corbat, Citi CEO, commented:
We navigated an uncertain environment successfully by executing our strategy, and by showing disciplined expense, credit and risk management. We increased our Return on Assets year-over-year to 97 basis points; and generated a Return on Tangible Common Equity of 11.9%, over 100 basis points better than last year. We delivered positive operating leverage for the 11th straight quarter and improved our efficiency, while again increasing loans and deposits. We have good momentum and solid growth across our consumer franchise, particularly in the U.S., while in the ICG, our industry leading Treasury and Trade Solutions business continues to perform well and we gained share in market-sensitive products such as Investment Banking.
Shares of Citigroup traded down 1.3% early Monday at $70.84, in a 52-week range of $48.42 to $75.24. The consensus price target is $80.84.
24/7 Wall St.The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
