Citigroup Stock Gains After Strong Beat
2022.07.15 18:07
Citigroup (C) Stock Gains After Strong Beat
By Senad Karaahmetovic
Shares of Citigroup (NYSE:C) are up over 4% after the company posted better-than-expected Q2 results.
Revenue came in at $19.6 billion to easily top the $18.43 billion expected from market analysts. EPS was reported at $2.19, again better than the $1.70 expected.
Citi’s FICC sales & trading unit generated $4.08 billion in revenue to also top the consensus. However, Citi followed Morgan Stanley (NYSE:MS) and JPMorgan (JPM) in reporting worse-than-expected revenue from investment banking as Street experiences deal-making.
“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 levels. I am particularly pleased with our capital strength. We ended the quarter with a Common Equity Tier 1 ratio of 11.9%, having built capital due to a higher regulatory requirement. We intend to generate significant capital for our investors, given our earnings power and the upcoming divestitures,” Citi CEO Jane Fraser said.
On Russia, Fraser said the company is considering all options after previously it sought to sell all assets in the country. Citi’s exposure to Russia increased by about $500 million, compared to the first quarter.
