Citigroup: Q2 earnings

Summary of Citigroup's earnings for its second quarter, following which shares went up 3.3% in the pre-market (1:10pm).



Earnings per share


$18.81 billion $1.10


$19.38 billion $1.24


Start trading nowlog in or see live chart

It’s a tricky task to announce a massive fine on the same day as an earnings release, but Citigroup managed it brilliantly. The shares are up over 3% today after earnings came in ahead of expectations.

The $7 billion fine was actually smaller than anticipated, providing a head start on the positive sentiment. Meanwhile adjusted income was $1.24 a share, above the forecast $1.05, although down on the $1.34 made in the same period last year.

Trading revenues were down, but not as badly as expected; capital markets revenues were reduced by 16% compared to last year, but this was better than the 20-25% forecast by the group's CFO.

Overall the outlook is a more positive one, and adds nicely to the picture presented by Alcoa which also beat expectations. As we look to Morgan Stanley and Goldman Sachs tomorrow, investors can afford to feel more confident.

Broker sentiment on Citigroup remains bullish, despite the steady decline of the shares this year. Of 29 brokers, the average rating is a ‘buy’, reflecting increased optimism about the outlook.

On a valuation basis, Citigroup is below its sector peers on price-earnings, at 10.15 versus 15.84 for the broader sector, while its return-on-equity has been 6.9% versus a more robust 10.4% for the sector as a whole.

On a technical level, we are yet again witnessing a failure to break through the 200-daily moving average, a recurring feature of price action in Citigroup in 2014. Any move higher would need to hold above this level and the $50 mark if we are to see an attempt to challenge the 2014 high of around $55.30.

On the downside, $46 appears to be a significant support zone, through which it may be difficult to break.

If earnings from other banks follow Citigroup’s lead in being better than forecast, the shares may finally have discovered the upward momentum they need.

Here is a  full list of US stocks that can be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm (London time).

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.