Citigroup topped the Street’s earnings expectations for the second quarter sending its shares higher.
As expected by analysts, both the company’s 2Q profits and revenue dropped year-over-year.
For the quarter, Citigroup posted net income of $2.9 billion, down 36% from $4.5 billion in the year-ago quarter, which the bank said was driven by higher expenses, higher cost of credit, and lower revenues.
Excluding divestiture-related impacts of $73 million in earnings before taxes driven by separation costs related to Mexico and severance costs in Asia exit markets, its net income decreased by 33% year-over-year.
Earnings per share were $1.33 on revenue of $19.4 billion, lower than earnings per share of $2.19 on revenue of $19.6 billion in the second quarter last year.
Analysts had expected earnings per share of $1.30 and revenue of $19.3 billion, according to Refinitiv data.
“Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” Citigroup CEO Jane Fraser said in a statement.
Citigroup shares had added 1.6% at US$48.46 in pre-market trading on Friday.
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