2023-04-14 09:08:35 ET
Citigroup ( NYSE: C ) stock drifted higher by 1.8% in Friday premarket trading after the bank's first-quarter earnings and revenue each surpassed Wall Street expectations thanks to a rise in fixed-income trading.
“Citi delivered strong operating performance, showing good revenue growth and expense discipline despite the tumultuous environment for banks,” said CEO Jane Fraser.
“TTS continued to perform extremely well, growing noninterest revenue on new mandates and strong cross-border activity. Markets saw the third best quarter in the last decade in Fixed Income. Banking activity picked up from the end of 2022," she added.
Q1 adjusted EPS of $1.86 (excluding divestiture impacts of $0.33), exceeding the average analyst estimate of $1.69, increased from $1.10 in the year-ago quarter.
Revenue of $21.4B (excluding divestiture impacts of $1.02B), topping the $20.1B consensus, rose from $18.01B in Q4 2022 and from $19.2B a year earlier.
Q1 operating expenses were $13.3B, up from $13B in Q4 and from $13.2B in Q1 2022.
Q1 net credit losses came in at $1.3B vs. $1.18B in the previous quarter and $872M in Q1 of last year. net allowance credit build of $241M compared with $640M in Q4 and a release of $138M in Q1 2022. Total cost of credit was $1.98B vs. $1.85B in Q4 and $755M in Q1 2022.
Institutional Clients Group revenue was $11.2B in Q1, up 23% Q/Q and 1% Y/Y. Personal Banking and Wealth Management revenue of $6.45B gained 6% Q/Q and 9% Y/Y. Legacy Franchises revenue of $2.85B jumped 39% Q/Q and 48% Y/Y.
Loans of $652B slipped 1% both Q/Q and Y/Y; deposits of $1.33T edged down 3% Q/Q and was roughly flat from a year before.
Conference call at 11:00 a.m. ET.
Earlier, Citigroup Non-GAAP EPS of $1.86 beats by $0.17, revenue of $21.4B beats by $1.34B .
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Citigroup Q1 earnings top consensus, helped by fixed-income trading