Citigroup Inc C shares are trading sharply higher by 14.1% to $50.36 Friday afternoon after the company reported better-than-expected second-quarter EPS and sales results.
What Happened?
Citigroup reported quarterly earnings of $2.19 per share which beat the analyst consensus estimate of $1.69. The company also reported quarterly sales of $19.60 billion which beat the analyst consensus estimate of $18.12 billion by 8%. This sales figure represents is a 12% increase over sales of $17.47 billion in the same period last year.
Institutional Clients Group revenue grew 20% year over year, driven by double-digit growth in Markets and Services revenue.
Citi CEO Jane Fraser said, “In a challenging macro and geopolitical environment, our team delivered solid results and we are in a strong position to weather uncertain times, given our liquidity, credit quality and reserve levels. I am particularly pleased with our capital strength."
"We ended the quarter with a Common Equity Tier 1 ratio of 11.9%, having built capital due to a higher regulatory requirement. We intend to generate significant capital for our investors, given our earnings power and the upcoming divestitures,” Ms. Fraser concluded.
Why it Matters
Shares of banks and financial services companies were otherwise trading lower Thursday in sympathy with JP Morgan and Morgan Stanley, which reported worse-than-expected second-quarter results.
The sector has been under pressure this year amid broader economic concerns as traders assess the possibility of a recession. Per Friday's price action, Citi's beat on the top and bottom line is giving traders and investors confidence in the bank despite the macroeconomic backdrop.
According to data from Benzinga Pro, Citi has a 52-week high of $74.64 and a 52-week low of $43.44.
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