Citigroup (C) Earnings Climbed By 3-Folds in Q1

Citigroup Inc (NYSE:C) in its current form is a result of a merger between banking giant Citicorp and insurance giant Travelers Group in 1998. It is one of the world’s biggest banks, serving millions of clients in more than 160 countries and territories. It is considered a global leader in banking and wealth management, helping clients protect assets, manage daily operations, and grow.

The New York-based bank recently announced strong earnings for the first quarter, helped by a recovery in the broader economy and a surge in its investment banking operations. Citigroup reported earnings of $7.9 billion, or $3.62 per share for the quarter, representing a surge of more than 3-folds from the comparable period of 2020. Analysts on average were looking for earnings of $2.60 per share.

Revenue marginally moved down to $19.3 billion, as compared to $20.7 billion in the year-ago quarter. However, the figures were better than the consensus estimate of $18.8 billion. The decline was mainly attributed to an 18 percent drop in credit card revenue.

Speaking on the results, CEO Jane Fraser said in a statement, “We reported record net income driven by strong performance in our Institutional Clients Group and a significant release from our Allowance for Credit Losses, as a result of the improving economic outlook. While Global Consumer Banking revenues were down quarter-over-quarter as a result of the pandemic, this is the healthiest we have seen the consumer emerge from a crisis in recent history.”

If we look at the performance of key divisions, revenue at the global consumer banking segment plummeted 14 percent on a year-over-year basis to $7 billion, while revenue at the institutional clients group slipped 2 percent to $12.2 billion. Separately, Citigroup announced that it is closing retail banking activities in 13 countries across Asia, Europe, Middle East, and Africa to better focus on high-growth areas.

See also 10 Smart Ways To Cut Your Utility Bills