Citigroup's Q2 profit up 45% on higher revenue and lower provisions

Citigroup Inc.

Citigroup Inc.

C

0.00


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$24.80 bln

Q2 EPS

$3.15

Q2 Net Income

$5.80 bln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.