Citigroup (NYSE:C) topped expectations for first-quarter profit and revenue on better-than-expected trading results as Wall Street benefited from surging volatility tied to the Ukraine war.
Shares rose 96 cents, or 1.9%, in trading on Thursday to $51.10.
Earnings per share came in at $2.02 vs $1.55 expected, while revenue: $19.19 billion vs $18.15 billion expected
The bank said Thursday that earnings fell 46% to $4.3 billion, or $2.02 a share, on higher expenses and credit costs and lower revenue. While companywide revenue slipped 2% to $19.19 billion, that was a full $1 billion more than analysts expected.
“In markets, our traders navigated the environment quite well, aided by our mix, with strong gains in [foreign exchange] and commodities,” CEO Jane Fraser said in the release. “However, the current macro backdrop impacted investment banking as we saw a contraction in capital market activity.”
Citigroup results tracked those of JPMorgan Chase, Goldman Sachs and Morgan Stanley, all rivals in the Wall Street arena of fixed income and equities trading. Each of the firms topped lowered expectations for trading results in the quarter, after the Ukraine conflict set off upheaval in markets around the world. Before this week, it was unclear if that would benefit or hurt investment banks.
Citigroup, the most-global of big U.S. banks with operations in more than 100 countries, likely has the most significant exposure to the Ukraine conflict. Analysts will be keen to understand the various impacts of the war on the firm, including on its planned sale of a Russian consumer banking unit.