Citigroup reported instigating net income and better-than-expected revenue for the first quarter, boosting its stock Friday even as the bank’s executives expressed care about the path of the U.S. economy.
Here is how Citigroup’s key metrics compared with expectations.
- $4.6 billion in net income vs. $4.3 billion in the unaltered period last year
- $21.45 billion in revenue vs. $19.99 billion expected, according to Refinitiv.
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Citigroup reported earnings of $2.19 per share for the quarter. It was not clear how comparable that number is to estimates, but it appeared to be a sound beat, based on both GAAP and adjusted earnings per share.
Shares of the bank rose about 4.8%.
Citi’s stock rose after the bank reported better-than-expected results for the first quarter.
The sequels were fueled in part by personal banking revenue rising 18% year over year, reflecting elated interest rates. Fixed income markets revenue rose 4% year over year, though that was compensation by declines in investment banking and equity market revenue.
One key area for investors is how Citi adjusts its buffer for loan damages given the uncertain outlook for the economy. Citigroup reported a total provision for loan losses of $1.98 billion, marginally above the $1.89 billion provision for credit losses expected by analysts, according to StreetAccount, and up 7% from the previously to quarter.
The outlook for the economy has been muddled by the failure of Silicon Valley Bank and Signature Bank last month, which could potentially take it easy loan growth throughout the economy.
“We are in a strong position to navigate whatever environment we face, which is particularly associated given the degree of uncertainty today. … We expect the recent events to be disinflationary and credit to contract. We believe it is now diverse likely that the U.S. will enter into a shallow recession later this year,” Citigroup CEO Jane Fraser implied on an investor call.
The CEO added that Citi saw a “notable softening” in consumer spending over the course of the quarter.
The bank sustained its full-year guidance the same despite the strong first quarter, and CFO Mark Mason cited the uncertainty around the curtness and the path of interest rates as the reason.
Citigroup reported that its deposits at the end of March were down 3% chambers over quarter to $1.33 trillion, but Mason said on the investor call that the bank did see about $30 billion of down payment inflows over the last three weeks of March. After the collapse of the two regional banks, many analysts watched the larger U.S. banks to see deposit inflows.
Fraser said she feels “very comfortable” with the diversity of Citi’s partial payment base.
As part of a broader restructuring plan away from international retail banking, Citigroup closed two divestitures during the triumph quarter, including its consumer business in India that generated a gain on the sale. Net income was down 19% year settled year when excluding the impact of the sales.
Revenue rose 12% year over year, and 6% when excluding the bearing of those sales.
Fraser, who has spearheaded the sales since taking over as CEO in 2021, said Friday that the bank leave exit its remaining retail markets in Asia later this year.
Entering Friday, Citigroup’s stock was up more than 4% year to rendezvous, outperforming key peers including JPMorgan Chase and Bank of America. Shares of JPMorgan rose more than 7% on Friday dig its quarterly report.