Citigroup delivers mixed first-quarter results due to growth in equity revenue

nvesting.com – Citigroup reported better-than-expected first-quarter earnings, but its equities division dragged revenue down, coming in below consensus.

The bank reported earnings per share of $1.87 on revenue of $18.58 billion. Analysts polled by Investing.com forecast EPS of $1.80 on revenue of $18.61 billion.

Following the report’s release at 8:34 a.m. ET (12:34 GMT), Citigroup (NYSE:C) shares were up 0.3% at $67.65 in pre-market trading.

Citi said the 2% year-over-year decline in revenue was “largely due to lower revenues in equity markets as well as mark-to-market losses on loan collateral.” Equities trading revenue fell 24% to $842 million.

The bank emphasized that the 2% increase in net profit was due to cost reductions and a lower effective tax rate, although this result was partially offset by lower revenues and higher credit costs. EPS for the first quarter increased 11% compared to the same period a year earlier.

“Our earnings reflect the progress we are making to improve our return on capital,” CEO Michael Corbat said in a press release. “We remain committed to executing our strategy and making continued progress toward our financial goals.”

Citigroup is tracking other major financial sector results this month

Earlier on Monday, Goldman Sachs reported earnings per share of $5.71 on revenue of $8.81 billion. Analysts polled by Investing.com forecast EPS of $4.89 on revenue of $8.93 billion.

On Friday, JPMorgan saw first-quarter EPS of $2.65 on revenue of $29.85 billion, compared to forecasts for EPS of $2.35 on revenue of $28.44 billion.

Wells Fargo&Co’s earnings beat analyst expectations on Friday, with first-quarter EPS of $1.2 and revenue of $21.61 billion. Investing.com analysts expected EPS of $1.11 on revenue of $20.99 billion.

Stay up to date with all upcoming earnings reports by visiting the earnings calendar on Investing.com

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