Citigroup tops analysts’ estimates for earnings and revenue in the second quarter

Citigroup Inc. (NYSE: C) published its quarterly financial results on Tuesday that topped analysts’ estimates for earnings and revenue in the second quarter. The company attributed its hawkish performance to a significant increase in trading revenue that helped offset the slowdown in the consumer banking segment. Citigroup forecasts to cap office occupancy at 40%.

The higher trading revenue, the U.S. investment bank said was due to COVID-19 that fuelled market volatility in recent months. JP Morgan Chase also reported a 79% increase in Q2 trading revenue on Tuesday.

Shares of the bank jumped more than 1% in premarket trading on Tuesday. At £41.95 per share, Citigroup is a little under 40% down year to date in the stock market after recovering from an even lower £28.25 per share in late March. Learn more about the financial analysis of a company.

Citigroup’s Q2 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast the company to print £15.26 billion in revenue in the second quarter. In terms of earnings per share, they had estimated 22.35 pence. In its report on Tuesday, Citigroup topped both estimates posting a higher £15.78 billion in revenue and 39.91 pence of earnings per share in Q2.

Citigroup also highlighted its fixed income, currency and commodities trading revenue at £4.47 billion in the recent quarter that came in stronger than the FactSet consensus of £3.88 billion. Its revenue from equity trading, on the other hand, saw a 3% decline in Q2 to £614.69 million.

Citigroup passed the FED’s annual stress test in June

Citigroup cleared the FED’s annual stress test in June, following which, the bank expressed plans of maintaining the quarterly dividend. In a statement, CEO Michael Corbat said last month:

“While we will continue to evaluate our planned capital actions relative to the most recent financial and macroeconomic conditions, we believe we are well-positioned to continue to support our customers and the broader economy.”

Other prominent figures in Citigroup’s earnings report on Tuesday include a 10% year over year decline in its revenue from global consumer banking to £5.86 billion, a 12% increase in net credit losses to £1.76 billion, and a massive 73% decline in net income to £1.05 billion in the second quarter.

Citigroup performed largely upbeat in the stock market last year with an annual gain of more than 50%. At the time of writing, the American multinational financial services corporation is valued at £86.75 billion and has a price to earnings ratio of 7.12.