Citigroup Revenues Rise On Fixed Income Trading Revenues

Scott Peters
15 Jul, 2022
New York City

Citigroup said second quarter revenues increased 19% to $19.6 billion on higher net interest income and strong volumes in the personal banking and institutional clients group. 

Net income declined 27% to $4.5 billion on higher cost of credit and an 8% increase in expenses more than offset the 11% increase in revenues.

Diluted earnings per share declined 27% to $2.19 from $2.85 a year ago. 

Return on average common equity fell to 9.7% from 13.0%.  

Total deposits at the end of the quarter increased 1% to $1.3 trillion and loans declined 3% to $657.0 billion.

At the end of the June quarter, loan loss reserves were $16.0 billion or loan loss reserves of 2.44% compared to $19.2 billion or 2.88% a year ago. 

 

Institutional Revenues Soar 20%

Institutional Clients Group increased 20% to $11.4 billion including higher revenues from loan hedges and partially offset by a decrease in Investment Banking revenues.

Markets segment revenues increased 25% to $5.3 billion driven by higher volatility leading to higher trading activities. 

Fixed Income Markets revenues increased 31% to $4.1 billion on higher trading volumes in the rates, currencies and commodities businesses. 

Equity Markets revenues rose 8% to $1.2 billion on strong equity derivatives trading. 

Investment Banking revenues plunged 46% to $805 million on weak capital market and merger and acquisition activities and the decline in banking was offset by higher revenues in corporate lending. 

During the quarter, Citigroup returned $1.3 billion to shareholders in the form of dividends and repurchases.

 

Personal Banking Revenues Rose 9% 

U.S. personal banking revenues increased 9% to $4.1 billion and branded cards revenues increased 10% to $2.2 billion on interest on higher loan balances. 

New accounts and card spend volumes increased 18%, while average loans increased 11%. 

Retail services revenues increased 7% to $1.3 billion on higher interest on higher loan balances, partially offset by higher partner payments. 

Retail banking revenues increased 6% to $656 million on higher deposit spreads and volumes.

 

Global Wealth Management Revenues Flat

Global wealth management revenues were flat at $1.9 billion were flat on lower investment fee, particularly in Asia, offset by growth in average deposits and loans.

 

Company and Stock 

The 212-year old banking institution Citigroup provides financial services to individuals, corporations and governments and the bank has about 72 million credit card customers.  

Citigroup soared 10.5% to $48.52 after the release of earnings and the stock has fallen 20.8% in the year so far.