Citigroup Announces Second Quarter Results in a Global Climate of Uncertainty

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Citigroup (CMonday announced a second-quarter profit higher than Wall Street's expectations, as its results are supported by an increase in fixed income transactions, a reduction in costs and a one-off gain on Tradeweb's public offering. "data-reactid =" 22 "> Citigroup (C) on Monday announced second-quarter earnings above Wall Street expectations, supported by higher fixed income deals, lower costs and a one-time gain the Tradeweb market.

The bank reported diluted earnings in the second quarter of $ 1.95 per share as earnings were boosted by a one-time pre-tax gain. On an unadjusted basis, the bank achieved a net profit of US $ 1.83 per adjusted share, for a turnover of 18.8 billion USD, compared to the results of the corresponding year, ie 1.63 USD per share and $ 18.5 billion.

Analysts estimate on average that Citi will record $ 1.80 per share for a $ 18.5 billion business, according to Bloomberg.

Citi shares, which closed Friday trading at $ 71.77, initially increased in the pre-market period. Still, the stock lost altitude after the opening bell and hardly changed during the session.

Revenues were up 2% from the second quarter of 2018, Citi said, helped by a $ 350 million pre-tax gain on its investment in the newly-released Tradeweb electronic trading platform. Global consumer banking increased 3%, while operating expenses decreased 2%, mainly due to the gradual reduction of traditional activities.

In addition, the bank recorded higher revenue from fixed income and retail banking, offsetting the expected decline in investment banking and investment banking activities. 39; shares.

"We have good momentum and solid growth in our consumer segment, particularly in the United States," said CEO Michael Corbat in a statement.

"We remain committed to improving our return on capital while continuing to provide a meaningful return to our shareholders," he added.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Citi is the first of the curved supports of Wall Street The month last, the banking giant warned that its results would be affected by the slowness of transactions.trading and investment banking activity& nbsp; – two pillars of Citi's balance sheet. "data-reactid =" 30 "> Citi is the first Wall Street banking bank to release earnings and last month, the banking giant warned its earnings would be affected by slow trading in investment banking – two pillars of Citi's balance sheet.

With the global economy slowing, analysts are also watching for signs of weakness in Citi's international banking segments. With the exception of its Europe, Middle East and Africa segments, revenues from international units at the bank posted gains from one figure to another.

"At first glance, the results seem correct and consistent with the prospect that Citi will continue to display improved profitability," UBS banking analysts wrote Monday in a research note.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Stock of Citi & nbsp;surpassed peers in the banking sector in 2019and up nearly 40% year-on-year. Oppenheimer qualifies Citi for outperformance with a price target of $ 102 over 12 months. "Data-reactid =" 33 "> Citi's share price surpassed its counterparts in the banking sector in 2019 and has grown by almost 40% since the beginning of the year.Overlook with a price target of $ 102 over 12 months.

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