Banking, finance, and taxes
Citigroup's Incredible Fixed Income Growth Is Not Good Enough?
Published:
Citigroup Inc. (NYSE: C) reported its second-quarter financial results before the markets opened on Tuesday. The bank said that it had $0.50 in earnings per share (EPS) and $19.8 billion in revenue, while consensus estimates had called for $0.28 in EPS and $19.11 billion in revenue. The same period of last year reportedly had $1.95 in EPS and $18.76 billion in revenue.
Management noted that while credit costs weighed down net income, the overall business performance was strong during the quarter. The Institutional Clients Group had an exceptional quarter and Global Consumer Banking revenues were down as spending slowed significantly due to the pandemic.
One thing that stands out in this report was that the Markets and Securities Services (a subset of Institutional Clients Group) saw revenues increase 48% to $6.9 billion. Fixed Income Markets revenues of $5.6 billion increased 68%, reflecting strength in rates and currencies, spread products and commodities.
In terms of its segments, the bank reported:
- Global Consumer Banking revenues decreased 10% year over year to $7.34 billion.
- Institutional Clients Group revenues increased by 21% to $12.14 billion.
- Corporate / Other revenues decreased 49% to $290 million.
Citigroup’s end-of-period loans were $685 billion as of quarter’s end, up 1% from last year. End-of-period deposits were $1.2 trillion, an increase of 18%.
Citigroup’s allowance for credit losses on loans was $26.4 billion at quarter end, or 3.89% of total loans, compared to $12.5 billion, or 1.82% of total loans, at the end of the prior-year period.
Book value per share increased 5% year over year to $83.41, and tangible book value per share increased 5% to $71.15. This was largely driven by a reduction in outstanding common stock.
Citigroup stock traded down about 2% to $51.26 on Tuesday, in a 52-week range of $32.00 to $83.11. The consensus price target is $69.29.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
