Citi (NYSE:C) after beating on earnings. The firm reported an adjusted $1.33 per share and $19.44 billion in revenue. Analysts polled by Refinitiv forecasted $1.30 per share and $19.29 billion.
“Our Services businesses continued to deliver strong revenues, with Treasury and Trade Solutions and Securities Services both up a healthy 15%,” said CEO Jane Fraser. “Market revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out. In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter.”
Q2 adjusted EPS of $1.37 missed the average analyst estimate of $1.38 and fell from $1.86 in Q1 2023 and from $2.17 in Q2 2022.
Revenue of $19.4B, matching consensus, fell from $21.4B in the prior quarter and from $19.6B in the year-ago quarter.
Q2 net credit losses were $1.50 Billion vs. $1.30 Billion in the prior quarter and $850 million in the year-ago quarter. Net allowance credit build of $161 million vs. $241 million in Q1 and $375 million in Q2 2022. Total cost of credit was $1.82B vs. $1.98B in the prior quarter and $1.27B in the year-ago quarter.
Institutional Clients Group revenue of $10.4B fell 7% Q/Q and 9% Y/Y. Personal Banking and Wealth Management revenue of $6.40B slipped 1% Q/Q and rose 6% Y/Y. Legacy Franchises revenue of $1.92B dropped 33% Q/Q and 1% Y/Y.
C shares dipped 42 cents to $47.26.