Citigroup beats Q1 earnings expectations

All's well that lends well.

Citigroup’s Q1 earnings came in ahead of expectations, helped by an improvement in its capital markets performance, sending shares higher on Monday. Earnings came in at $1.11 per share on net revenue of $20.1 billion while analysts were expecting $1.00 on $19.8 billion. Capital markets revenue in the quarter was $5.2 billion, down 12% from the prior year, but well above the $3.2 billion posted in Q4.

It made a $1.3 billion profit after losing $134 million in Q4, primarily driven by a 54% increase in fixed-income underwriting. Retail banking saw revenue increase 5% from the prior year to $10 billion with strength in almost all geographic regions.

CFO John Gerspach said that “loan demand is picking up” in emerging markets but that “European economies are still struggling, and the U.S. is dealing with a rather sluggish economy.” The bank’s loan book grew 12% from the prior year to $514 billion, and currently has roughly 26% of its balance sheet in either cash or highly liquid securities that it would prefer to lend out.

Citigroup (C : NYSE : US$34.00), Net Change: 0.59, % Change: 1.77%, Volume: 58,548,700

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Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

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