Citigroup (C) earnings Q1 2024

Citigroup beats first-quarter revenue estimates

Citigroup reported first-quarter revenue on Friday that beat analysts' estimates, helped by better-than-expected results in the bank's investment banking and trading businesses.

Here's how the company performed compared to estimates from LSEG, formerly known as Refinitiv:

  • Earnings: $1.86 per share, adjusted, versus expected $1.23
  • Revenue: $21.10 billion vs. expected $20.4 billion

The bank said profit fell 27% from a year ago to $3.37 billion, or $1.58 per share, due to higher expenses and borrowing costs. Adjusted for the impact of FDIC fees, restructuring and other costs, Citi earned $1.86 per share, according to LSEG calculations.

Revenue fell 2% to $21.10 billion, primarily due to the impact of the sale of a foreign business in the year-ago period.

Investment banking revenue rose 35% to $903 million in the quarter, driven by increased debt and equity issuance, topping StreetAccount's estimate of $805 million.

Fixed income trading revenue fell 10% to $4.2 billion, topping estimates of $4.14 billion. Stock trading revenue rose 5% to $1.2 billion, beating estimates of $1.12 billion.

The bank also reported an 8% increase in revenue to $4.8 billion in its services division, which includes companies that serve the banking needs of global corporations, thanks to rising deposits and fees.

The bank's shares fell 2% after earlier posting gains.

Citigroup CEO Jane Fraser previously said its major corporate reform would be completed by March and that the company would provide an update on severance costs along with its first-quarter results.

“Last month marked the end of the organizational simplification we announced in September,” Fraser said in the earnings release. “The result is a cleaner, simpler management structure that is fully aligned with and facilitates our strategy.

Last year, Fraser announced plans to simplify the management structure and cut costs at the third-largest U.S. bank by assets. The bank on Friday reiterated its medium-term goals for a return of at least 11% and revenue of at least $80 billion this year.

JPMorgan Chase reported results earlier on Friday and Goldman Sachs reported on Monday.

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