Jane Fraser, CEO of Citi, speaks at the Milken Institute Global Conference in Beverly Hills, California, May 1, 2023.
Patrick T. Fallon | AFP | Getty Images
Citigroup First-quarter earnings reported Friday beat analysts’ estimates, helped by better-than-expected results from the bank’s investment banking and trading operations.
Here’s what the company said:
- Earnings: $1.58 per share, unclear if this compares with LSEG’s $1.23 estimate.
- Revenue: $21.10 billion versus expected $20.4 billion.
The bank said profit fell 27% from a year earlier to $3.37 billion, or $1.58 per share, due to higher costs and borrowing costs. Revenue fell 2% to $21.10 billion, mainly due to the sale of overseas businesses in the prior year.
Investment banking revenue for the quarter jumped 35% to $903 million, driven by higher debt and equity issuance, beating StreetAccount’s estimate of $805 million.
Fixed income trading revenue fell 10% to $4.2 billion, beating estimates of $4.14 billion, while equity trading revenue rose 5% to $1.2 billion, beating estimates of $1.12 billion.
Citigroup CEO Jane Fraser said its sweeping corporate overhaul will be completed by March and that the firm will provide an update on exit costs along with first-quarter results.
“The past month marked the end of the organizational simplification we announced in September,” Fraser said in the earnings release. “The result is a cleaner, simpler management structure that fully aligns with and facilitates our strategy.
Last year, Fraser announced plans to simplify the management structure and cut costs at the third-largest US bank by assets. Now analysts want to know whether Citigroup can maintain its previous forecasts for full-year revenue and expenses.
JP Morgan Chase reported the results earlier on Friday, and Goldman Sachs reports on Monday.
This story is evolving. Please stay tuned for updates.