Citi’s Russian exit will impact some 2,300 employees. Credit: Photo by Joshua Lawrence on Unsplash.

Citi’s net income decrease was driven by rising expenses, higher cost of credit and lower revenues, according to the bank.

Overall revenues reached $1.9bn in Q2 2023, 9% higher than in the same period last year. The increase is due to investments in risk and control, business-led and enterprise-led investments, as well as volume growth and macro factors, including inflation and severance.

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Revenues decreased by 1% from the year prior, as growth in the services sector was offset by a decline in Markets, Investment Banking and the Wealth sector.

“Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet”, said Jane Fraser, CEO of Citi. “Our services businesses continued to deliver strong revenues, with Treasure and Trade Solutions and Securities services both up a healthy 15%.”

Fraser said market revenues were down from a strong second quarter last year. That happened because “clients stood on the sidelines starting in April while the US debt limit played out”.

“In banking, the long-awaited rebound in investment banking has yet to materialise, making for a disappointing quarter”, she noted.

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Earnings per share tumbled 39% from the prior-year period, hitting $1.33.

The second-quarter profit announcement comes after a tough start for the American bank this year. In March, Citi said it intended to cut hundreds of jobs in investment banking and other divisions, which would affect less than 1% of the firm’s global workforce.