2023-07-14 08:24:00 ET
Citigroup ( C ) on Friday reported Q2 earnings that just missed the Wall Street consensus as disappointing results in investment banking and market revenue more than offset strong results in Treasury and Trade Solutions and Securities Services.
"Our Services businesses continued to deliver strong revenues, with Treasury and Trade Solutions and Securities Services both up a healthy 15%," said CEO Jane Fraser. "Market revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out. In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter."
Q2 adjusted EPS of $1.37 (excluding divestiture impacts) missed the average analyst estimate of $1.38 and fell from $1.86 in Q1 2023 and from $2.17 in Q2 2022.
Revenue of $19.4B, matching consensus, fell from $21.4B in the prior quarter and from $19.6B in the year-ago quarter.
Citigroup ( C ) stock gained 1.5% in Friday premarket trading.
Q2 net credit losses were $1.50B vs. $1.30B in the prior quarter and $850M in the year-ago quarter. Net allowance credit build of $161M vs. $241M in Q1 and $375M in Q2 2022. Total cost of credit was $1.82B vs. $1.98B in the prior quarter and $1.27B in the year-ago quarter.
Institutional Clients Group revenue of $10.4B fell 7% Q/Q and 9% Y/Y. Personal Banking and Wealth Management revenue of $6.40B slipped 1% Q/Q and rose 6% Y/Y. Legacy Franchises revenue of $1.92B dropped 33% Q/Q and 1% Y/Y.
Loans of $661B at June 30, 2023 increased from $652B at March 31; deposits of $1.32T slipped from $1.33B at the end of Q1.
Common equity tier 1 capital ratio was 13.3%, down a tick from 13.4% in Q1 and up from 12.0% in Q2 2022.
Conference call at 11:00 AM ET.
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Citigroup Q2 earnings miss as market, investment banking revenue disappoint