Citigroup's profits in the second quarter beat analysts' expectations, aided by the strong showing in international markets. Citi's net income in the latest quarter was $4.5 billion, way above $3.6 billion predicted by analysts. On the back of the strong earnings, Citi shares rose more than 8 percent in early trading in New York.
"In a challenging macro and geopolitical environment, our team delivered solid results and we are in a strong position to weather uncertain times, given our liquidity, credit quality and reserve level," said Chief Executive Officer Jane Fraser.
Total Revenue Hits $19.6 Billion
Citigroup's positive earnings report came a day after results of JPMorgan Chase and Morgan Stanley disappointed markets.
The group's total revenue increased 11 percent to hit $19.6 billion, which was above the average analyst estimate of $18.4 billion, according to Bloomberg. Earnings per share stood at $2.19 compared with the projected amount of $1.68.
Fixed Income and Equity Derivatives
Profit fell to $4.5 billion in the quarter ended June 30, which was a sharp decline from $6.2 billion a year earlier, the bank said in a statement. However, the better-than-expected results buoyed the markets.
Strong performance in the fixed-income products and equity derivatives largely contributed to the rise in revenues. However, revenue from investment banking dropped a whopping 46 percent. Income from the treasury and trade solutions segment saw a rise of 33 percent.
Meanwhile, the bank earmarked $1.3 billion to meet potential bad loan commitments in the wake of the economic slowdown. Though the bank foresees a revenue hit from the geopolitical tensions due to the ongoing Ukraine-Russia war, the economic impact will be smaller than previously calculated.
