Citi’s Earnings Slump In Q1

While investors were ultimately bucked up by a buyback, results were missed when Citigroup reported earnings earlier on Monday (April 15).

By the numbers, earnings came above expectations at $1.87 per share, instead of the $1.80 predicted pre-release. Revenue, on the other hand, came in below forecasts, at $18.576 billion instead of the expected $18.634 billion. Fixed-income, currencies and commodities trading revenue beat expectations at $3.452 billion, ahead of the $3.05 billion forecast. Investment banking revenue also came in ahead of expectations at $1.354 billion versus $1.2 billion.

But equities trading lagged, coming in at $842 billion instead of the expected $930 million.

“Our earnings reflect the progress we are making to improve our return on and return of capital,” CEO Michael Corbat said in a release. “We remain committed to executing our strategy and continuing to make steady progress toward our financial targets.”

While earnings picked up 11 percent year-on-year, revenues were down 2 percent over the time period, mostly attributable to the sharp decline in equities trading. Citigroup said the drop reflected “lower market volumes and client financing balances.”

Citigroup shares fell 0.9 percent after the banking giant released its results. Citigroup’s stock price has been up nearly 30 percent over the last year, pushing it ahead of its peers at JPMorgan Chase, Wells Fargo, Morgan Stanley and Bank of America.

The uneven earnings report today follows the announcement last week of the retirement of President Jamie Forese, who had long been considered a potential successor to CEO Corbat.

Citi’s earnings beat follows similar reports from JPMorgan Chase and Morgan Stanley.


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