Jane Fraser, CEO of Citi, spoke at the Milken Institute Global Conference in Beverly Hills, California on May 1, 2023. Citigroup posted first-quarter revenue that exceeded analysts’ expectations, fueled by strong performances in investment banking and trading operations. Earnings came in at $1.86 per share, adjusted, surpassing the $1.23 expectation, while revenue reached $21.10 billion compared to the $20.4 billion estimate. Profit declined by 27% to $3.37 billion, primarily due to higher expenses and credit costs. Revenue dropped 2% to $21.10 billion, mainly due to the sale of an overseas business in the prior year.
Investment banking revenue surged 35% to $903 million, driven by increased debt and equity issuance, beating the $805 million estimate. Fixed income trading revenue decreased by 10% to $4.2 billion, slightly higher than the $4.14 billion estimate, while equities revenue rose 5% to $1.2 billion, surpassing the $1.12 billion estimate. The Services division saw an 8% revenue increase to $4.8 billion, thanks to growing deposits and fees.
Citigroup CEO Jane Fraser had previously announced a corporate overhaul that would be completed by March. The restructuring aimed to simplify the management structure and reduce costs at the bank. Analysts are now awaiting updates on the full-year revenue and expense targets. JPMorgan Chase reported earnings earlier on Friday, and Goldman Sachs is set to report on Monday. Keep checking back for more updates on this developing story.
Citigroup exceeded analysts’ expectations in the first quarter of the year, with revenue of $21.10 billion and adjusted earnings per share of $1.86. The bank’s investment banking and trading operations performed well, with investment banking revenue increasing by 35% and fixed income trading revenue slightly down but still ahead of estimates. CEO Jane Fraser’s corporate overhaul was completed in March, resulting in a cleaner and more aligned management structure. Analysts are now looking to see if Citigroup can maintain its full-year revenue and expense targets. JPMorgan Chase and Goldman Sachs also reported their results this week. The story is ongoing and updates will be provided.
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