Citigroup beats analysts’ profit expectations on gains from Tradeweb IPO

Michael Corbat, CEO of Citigroup

Lucy Nicholson | Reuters

Citigroup beat analysts’ expectations for profit and revenue on gains from the initial public offering of electronic bond trading platform Tradeweb.

The bank posted profit of $4.79 billion, or $1.95 per share, compared with the $1.80 estimate of analysts surveyed by Refinitiv. Revenue climbed 2% to $18.76 billion, exceeding the $18.5 billion estimate. Without the gains from the IPO, the bank would have posted $1.83 per share in profit. 

Citigroup is the first of the big U.S. banks to report second-quarter results, so investors are keen to see how its banking and trading operations performed during the period.

Last month, CFO Mark Mason said at a conference that trading revenue in the quarter would likely decline by a “mid-single-digit” percentage from a year ago. Investors will also be keen to see if the bank was able to trim expenses while increasing revenue and how the lender’s sprawling non-U.S. operations performed in the quarter.

Shares of the New York-based bank climbed 38% so far this year, compared to the 16% gain of the KBW Bank Index.

Here’s what Wall Street expected:

  • Earnings: $1.80 a share, 11% more than a year earlier, according to Refinitiv
  • Revenue: $18.5 billion, almost unchanged from a year earlier.
  • Trading Revenue: Fixed income: $2.98 billion, Equities: $811 million, according to Factset
  • Efficiency ratio: 57.3, according to Factset

Articles You May Like

Tax Court Again Holds That 90-Day Deadline Is Jurisdictional
Waterfront Home On Oregon’s Oswego Lake Delivers On Lifestyle, Luxury
Michelangelo’s Childhood Villa In Florence, Italy, Finds A Buyer
Zepz, a $5 billion fintech unicorn, is laying off more staff
If You Act Before Year-End, IRS Respects Do-Overs Unwinding Taxes

Leave a Reply

Your email address will not be published. Required fields are marked *