Overview

• U.S. bank's Q2 revenue rose 14% yr/yr to $24.8 bln

• Q2 net income up 45% yr/yr, driven by higher revenue and lower credit loss provision

• Company returned $5.0 bln to shareholders via share repurchases and dividends

Outlook

• Citigroup did not provide specific guidance for the current quarter or full year

Result Drivers

• BUSINESS LINE GROWTH - Co said revenue growth was driven by expansion across its five interconnected businesses and legacy franchises, as well as foreign exchange translation

• LOWER CREDIT LOSS PROVISION - Co said net income rose due to higher revenue and a lower provision for credit losses, partially offset by higher expenses

• SERVICES MOMENTUM - Co said Services delivered its highest ever quarterly revenue and a return of over 30%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Citigroup Inc is $156.00, about 10.9% above its July 13 closing price of $140.71

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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