A Citibank sign in front of a company office in California.
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Citigroup reported better-than-expected results in the third quarter of Thursday. This is because trading income contributed to a significant increase in the company’s profits.
The bank reported $ 2.15 per share in earnings of $ 17.15 billion. Wall Street expected a $ 1.65 per share return against $ 16.97 billion in revenue, based on Refinitiv’s consensus estimates.
Net income was $ 4.6 billion, compared to $ 3.1 billion a year ago. This is a 48% year-on-year increase.
Fixed income and equity trading returns exceeded the $ 3.18 billion and $ 1.23 billion estimates, respectively. Analysts estimate $ 3.07 billion in fixed income trading and $ 909.7 million in equity trading, according to StreetAccount estimates. Equity trading revenue increased 40% year-on-year.
“The recovery from pandemics continues to build corporate and consumer confidence, creating very active customer engagement, as evidenced by good performance in investment banks and stock markets, both about year-over-year. It’s increased by 40% and doubled.-Helping customers relocate their supply chains has increased the digits of the Treasury and trading solutions, “said CEO Jane Fraser. It is stated in.
In the morning transaction after the earnings report, the bank’s stock price fell by less than 1%.
Citi announced an allowance for doubtful accounts of $ 1.16 billion, with net income of $ 192 billion for the quarter. Banks accumulated huge reserves during the economic downturn last year, but released them when the economy recovered, boosting profits.
In addition to the results, investors will look forward to Citi’s conference call on economic recovery, interest rates and loan creation. They also seek new insights into Fraser’s plans for banks she took over earlier this year.
Citi exceeded top-line and bottom-line expectations in the second quarter, partly due to a $ 1.1 billion profit from the allowance for doubtful accounts. The bank also announced in April that it would withdraw from retail in 13 countries other than the United States.
On Wednesday, JP Morgan launched the bank’s earnings season by beating profit expectations with a $ 1.5 billion boost from the allowance for doubtful accounts. Wells Fargo, Morgan Stanley and Bank of America also exceeded expectations on Thursday.
Beginning Thursday, Citi’s stocks rose about 14% year-to-date, below the returns of the KBW Bank Index and some of its larger caps.
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Citi Group (C) Revenues Q3 2021
Source link Citi Group (C) Revenues Q3 2021