Citigroup shares surge on bumper Q1 net income
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The news: Shares in Citigroup climbed to their highest level since the financial crisis on Tuesday, after the lender reported a 40% jump in net come.
The numbers: Shares in Citi rose 1.65% to USD128.35 ($179.89) as of 11:00am EDT (1:00am AEST) on Tuesday, after the bank saw its profits rise 42% year-on-year during the first quarter, reaching USD5.8 billion and beating expectations.
Citi’s revenue came in better than expected, climbing 14% to USD24.6 billion.
The bank’s fixed-income division reported USD5.2 billion of revenue, a 13% climb from the year prior, while its equities business raked in a record USD2.1 billion, a 39%. The unit notched the company’s highest quarterly trading results since the financial crisis.
The context: The results mark a milestone for CEO Jane Fraser who has helmed an extensive restructure of the bank’s entire operations which has lasted over two years. The overhaul involved cutting jobs, exiting retail markets outside of the US and refocusing on core parts of the business.
“We’ve entered into the final phase of our divestitures and 90% of our transformation programmes are now at or near our target state,” Fraser said in a statement on the results.
Citi also reported that its exposure to private credit firms was USD22 billion in the first quarter with zero losses.
Wells Fargo earlier reported that it roughly USD36.2 billion private credit exposure and missed estimates across its core businesses during the first quarter.
