Citigroup (C) Smashes Q2 Views on Improving Credit Markets, N.A. Profits
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Price: $50.01 +1.32%
Revenue Growth %: +5.6%
Financial Fact:
Provision (benefit) for income taxes: -32M
Today's EPS Names:
CO, JW-A, FDS, More
Revenue Growth %: +5.6%
Financial Fact:
Provision (benefit) for income taxes: -32M
Today's EPS Names:
CO, JW-A, FDS, More
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Citigroup (NYSE: C) shares are trading higher Friday morning following a second-quarter earnings beat amid overall improving credit market conditions.
Net income in the quarter increased 24 percent from $2.697 billion to $3.341 billion, or $1.09 per share. The Street was looking for more modest EPS of 97 cents.
Revenue for Citi fell 7 percent year-over-year to $20.622 billion, good enough to beat the consensus of $19.94 billion. Transaction services revs grew 6 percent to $2.663 billion.
"We produced growth in both loans and deposits in Citicorp, reduced assets in Citi Holdings, continued to invest in our core businesses, and improved our financial strength," CEO Vikram Pandit commented. "Although the near-term macroeconomic outlook is uneven, Citi is consistently profitable and we remain focused on producing responsible growth by serving our clients."
Citi is aiming for a Tier 1 common capital ratio under Basel III of 8 to 9 percent. Citi's current Tier 1 Common Ratio is 11.6 percent, a 30 basis point increase from the first quarter, and significant improvement from the 9.7 percent reported last year.
Citi's book value jumped from $53.32 to $60.34, with tangible book value increasing from $41.86 to $48.75.
Net credit losses dropped 35 percent to $5.147 billion in the quarter.
While revs in North America fell 12 percent, net income in the region grew 14 percent to $1.167 billion. Asia produced the opposite effect, with revs growing 8 percent, but net income falling 15 percent. Latin America was the only positive segment all around, with a 16 percent increase in revs leading to a 4 percent gain in net income.
Citi shares are up over 3 percent to $40.16 in pre-market action Friday.
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Net income in the quarter increased 24 percent from $2.697 billion to $3.341 billion, or $1.09 per share. The Street was looking for more modest EPS of 97 cents.
Revenue for Citi fell 7 percent year-over-year to $20.622 billion, good enough to beat the consensus of $19.94 billion. Transaction services revs grew 6 percent to $2.663 billion.
"We produced growth in both loans and deposits in Citicorp, reduced assets in Citi Holdings, continued to invest in our core businesses, and improved our financial strength," CEO Vikram Pandit commented. "Although the near-term macroeconomic outlook is uneven, Citi is consistently profitable and we remain focused on producing responsible growth by serving our clients."
Citi is aiming for a Tier 1 common capital ratio under Basel III of 8 to 9 percent. Citi's current Tier 1 Common Ratio is 11.6 percent, a 30 basis point increase from the first quarter, and significant improvement from the 9.7 percent reported last year.
Citi's book value jumped from $53.32 to $60.34, with tangible book value increasing from $41.86 to $48.75.
Net credit losses dropped 35 percent to $5.147 billion in the quarter.
While revs in North America fell 12 percent, net income in the region grew 14 percent to $1.167 billion. Asia produced the opposite effect, with revs growing 8 percent, but net income falling 15 percent. Latin America was the only positive segment all around, with a 16 percent increase in revs leading to a 4 percent gain in net income.
Citi shares are up over 3 percent to $40.16 in pre-market action Friday.
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