Citigroup share price down 1% after earnings revenue miss
The US bank had high profits, but worse-than-expected revenue in its latest earnings report.
|Earnings per share (EPS)||$1.87|
|Equities trading||$842 million|
|Investment bank revenue||$1.354 billion|
Citigroup share price down 3% as Q1 earnings revenue misses estimates
Citigroup’s Q1 earnings per share were $1.87, more than the $1.80 Wall Street expected because of growth in investment banking throughout the quarter. While the bank’s earnings exceeded expectations, Citigroup’s Q1 revenue was $18.576 billion, slightly less the predicted $18.634 billion.
Equities trading dropped by 24% to $842 million because of ‘lower market values’ and flat revenue in Asia, according to Citigroup. That decline likely led to the drop in Citigroup’s revenue.
Chief executive officer,(CEO),Michael Corbat, touted Citigroup’s Q1 earnings in a press release.
‘Our earnings reflect the progress we are making to improve our return on and return of capital. Both our consumer and institutional businesses performed well and we saw good momentum in those areas where we have been investing,’ said Corbat.
Corbat also commented on the growth in Citigroup’s Q1 profits in North America.
‘Importantly, our strategy in North America consumer banking is showing good early results as we introduce new products and engage with a broader range of customers, through digital channels,’ added Corbat.
How did Citigroup’s Q1 earnings compare to other banks?
Compared to other banks like Wells Fargo, Citigroup’s Q1 revenue was similar. Wells Fargo also had high earnings, but a decline in revenue. Compared to JPMorgan Chase’s record revenue, Citigroup’s Q1 earnings were worse than that bank’s profits.
What’s next for Citigroup’s Q2 earnings?
While Citigroup didn’t offer guidance for Q2, there will be an organizational change for the bank as president, Jamie Forese, is retiring after 30 years with Citigroup. Corbat offered a general statement expressing optimism about Citigroup’s revenue.
‘We remain committed to executing our strategy and continuing to make steady progress towards our financial targets,’ added Corbat.
Financial experts made predictions for Citigroup’s revenue in the future. Wall Street estimates that Citigroup’s earnings per share in Q2 will be $1.87 and Citigroup’s revenue will be $18.73 billion.
Citigroup’s Q1 profits report shows conflicting US banks results
Citigroup’s Q1 earnings shows that though the bank’s profits are improving on some areas, there is a slowdown in other sectors of Citigroup’s revenue. Citigroup’s mixed earnings show that US banks are benefiting from the increase in its investment banking division. However, banks are also affected by global volatility overseas as well.
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