Citigroup’s first quarter earnings surpassed analysts’ expectations, notwithstanding disappointing revenues.
The financial behemoth reported earnings of $1.87 per share, higher than analysts’ expectation of $1.80 per share (based on Refinitiv). Net income increased +2% from the year-ago quarter to $4.71 billion.
The company’s quarterly revenue of $18.576 billion, however, fell a bit short of $18.634 billion that analysts estimated (based on Refinitiv). Revenue was -2% lower from the year-quarter, largely due to a plunge experienced by its stock-trading business.
Stock-trading revenue for the bank declined -24% year-over-year. "Lower market volumes and client-financing balances," were cited by the bank as reasons behind the segment’s relatively weak performance.
Nevertheless, the pullback in stock-trading was partially offset by a +20% surge in Citi’s investment banking revenue. Also, revenue at its fixed-income desk increased +1% to $3.45 billion.