Citigroup beats Q1 2022 revenue and earnings consensus estimates

on Apr 16, 2022
  • Citigroup tops Q1 2022 earnings and revenue estimates
  • Revenue in Q1 2022 grew 18% YoY
  • Citi is seeing enhanced business resilience despite geopolitics dampening Wealth Management

Citigroup Inc. (NYSE: C) has announced a net income of $4.3 billion or $2.02 per share in Q1 2022, beating analyst estimates of $1.55 per share. The company had revenue of $19.2 billion which equally beat consensus estimates of $18.15 billion. In the same quarter a year ago, the company had a net income of $7.9 billion or $3.62 per share in a revenue of $19.7 billion. CEO Jane Fraser said:

Given our emphasis on Services, I am particularly pleased with our performance in Treasury and Trade Solutions. Fee growth, trade loans and cross-border transactions — buoyed by higher rates — led to year over year revenue growth of 18%. Securities Services also performed well, with revenue up 6%. In Markets, our traders navigated the environment quite well, aided by our mix, with strong gains in FX and commodities.

Financial results

The company reported high net interest income supported by the Personal Banking and Wealth Management (PBWM) and Services in Institutional Clients Group (ICG), partially offset by low non-interest revenue in various segments, resulting in a 2% drop in revenue compared to Q1 2021. ICG revenue was $11.2 billion, driven by investment banking, while services revenue increased 15% to $3.4 billion, with markets revenue dropping 2% to $5.8 billion.

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On the other hand, lower revenues, higher expenses, and high cost of credit resulted in a 46% YoY decline in net income to around $4.3 billion. During the quarter Citi reported Asia Consumer divesture-associated impacts of around $677 million as part of Legacy Franchises.

The decreased net income, partially offset by a 6% fall in outstanding shares, resulted in $2.02 per share earnings, down 44% from Q1 2021. Fraser added:

We continue to see the health and resilience of the U.S. consumer through our cost of credit and their payment rates. We had good engagement in key drivers such as cards loan growth an vigorous purchase sales growth, so we like where this business is headed. While geopolitics dampened performance in Wealth Management, we are hiring bankers, enhancing our client offerings and continuing to add clients in both the Private Bank and in Citigroup.

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