Citigroup managed to beat second-quarter expectations for revenue in spite of a 12% decline from a year earlier, driven by lower results in fixed income trading, falling credit card loans and dropping interest rates.

The firm’s earnings jumped after it released reserves set aside for loan losses, resulting in a $1.1 bn benefit after $1.3 bn in charge-offs. A year ago, the bank had been forced to set aside billions for expected credit losses, resulting in an $8.2 bn credit cost.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Shares of the bank climbed 1.6% after the earnings report.

“The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising,” CEO Jane Fraser said in the release.

“We saw this across our businesses, as reflected in our performance in Investment Banking and Equities as well as markedly increased spending on our credit cards. While we have to be mindful of the unevenness in the recovery globally, we are optimistic about the momentum ahead.”

The move out of retail banking

Like other Wall Street rivals, Citigroup posted a sharp decline in fixed income trading revenue in the quarter, partially offset by higher equities trading results.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Fixed income operations generated $3.2 bn in revenue, below the $3.66 bn estimate, while equities trading revenue of $1.1 bn topped the $879 m estimate.

Fraser, who became CEO in February, announced in April that Citigroup was exiting retail operations in 13 countries outside the US to improve returns. Now, analysts wonder what else Fraser has planned for her strategic revamp of Citigroup, the third biggest US bank by assets.

Shares of Citigroup have climbed 11% this year before Wednesday, compared with the 26% advance of the KBW Bank Index.