Earnings Results: Citigroup provides upside surprise and share rise while Wells Fargo misses

by | Jul 15, 2022 | Stock Market

Citigroup Inc. on Friday delivered better-than-expected profit and revenue but its earnings still fell along with Wells Fargo & Co. amid more difficult market conditions than a year ago. Citigroup
shares rallied 4.5% in premarket trading after the bank said its second-quarter earnings fell to $4.55 billion, or $2.19 a share, from $6.19 billion, or $2.85 a share, in the year-ago quarter.

The 27% drop in net income was driven by a higher cost of credit and higher expenses, the firm said. Revenue rose 11% to $19.64 billion from $17.75 billion. Analysts expected Citigroup to report earnings of $1.68 a share on revenue of $18.4 billion, according to a FactSet survey. CEO Jane Fraser said the bank managed to execute its strategy with “discipline and urgency” in a challenging macroeconomic 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,” CEO Jane Fraser said. The bright spots for Citigroup included its bond trading and other trade solutions units, which turned in its best quarter in a decade “as clients took advantage of our global network”, she said. Citi’s markets unit booked a 25% boost in revenue, but its investment banking and wealth management units struggled amid lower deal flow. The company repurchased $250 million in stock and paid out $1 billion in dividends during the quarter. Meanwhile, Wells Fargo & Co

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