Citigroup Inc (NYSE:C) reported a smaller-than-expected decline in profits for the first quarter.
For Q1, earnings per share decreased from $2.19 in the year-ago quarter to $1.58, above expectations of $1.13.
Net income decreased from $4.6 billion to $3.4 billion, driven by higher expenses, higher cost of credit and lower revenues.
Revenue was down 2% year-over-year to $21.1 billion but topped estimates of $20.3 billion.
Excluding a $1 billion divesture-related impact, revenues increased 3% year-over-year driven by growth across banking, US personal banking and services offset by declines in markets and wealth.
XTB research director Kathleen Brooks commented that Citi stood out from other big banks in terms of its net interest income (NII) performance in Q1, beating estimates at $13.5 billion.
“The market is clearly focused on NII rather than other revenue streams from US banks,” she wrote.
“This is a turnaround for Citi, which registered one of its worst quarters for earnings in Q4 2023, which sent the stock price tumbling. The market is clearly favoring Citi’s turnaround efforts, its lower valuation and its strong NII that beat forecasts.”
Shares of Citigroup traded modestly lower, down 0.5% at about $60 in early trade on Friday.