Citigroup Shares Grow by 13% after Posting Earnings Results

Citigroup posted its earnings for the second quarter of 2022, which saw its share prices jump tremendously.

Citigroup Posted its Earnings

The executives at Citigroup posted the earnings the firm had generated in the second quarter of 2022. They were excited to share the earnings Citigroup had generated in the particular quarter. The earnings were much higher than the estimations made by the analysts.

The executives confirmed that they topped both the revenue and profit for the respective quarter. The remarkable growth in profit and revenue has been attributed to the interest rates that have been hiked.

The executives revealed that they have also recorded strong growth in the trades that have helped them top the expectations set by the analysts.

Earnings vs. Estimations

The earnings per share estimations made by the Refinitiv analysts were $1.68 per share. The actual earnings generated by Citigroup were $2.19 per share.

The revenue estimations set by the analysts were $18.22 billion. Whereas, Citigroup successfully generated revenue worth $19.64 billion.

After posting the earnings results, Citigroup saw its shares jump 13%. The company is listed on the New York Stock Exchange (NYSE) and it experienced a rise on Friday.

The executives claimed that these are the high earnings they have reported in more than 20 years.

Profit Decline

Despite the promising earnings, Citigroup revealed that its profits were much lower than the profits it recorded a year earlier. In the recent quarter, they generated a profit of $4.55 billion, translating to $2.19 per share.

However, the profit is 27% less than the profit generated a year back. In the year 2021, the profit generated was $6.19 billion, translating to $2.85 per share.

The company revealed that despite the losses, they have generated a higher profit. The executives also revealed that they had to set aside funds in order to get ready for the losses they are anticipating.

Revenue Generation

The Citigroup executives claimed that their revenue rose 11% more than what was estimated by the analysts. The revenue of $19.64 billion is more than $1 billion which was expected.

The executives stated that the interest income has been rising, which is after the announcements made by the Fed in regards to interest hikes. The company also reported that its trading division has started recording strong returns, which is another strong factor boosting its earnings.

The banking solution has also posted that they have recorded a jump in Net Interest Income. The estimations for the Net Interest Income were $11.21 billion. However, they were able to generate a Net Interest Income of $11.96 billion, 14% over the estimations.

The recent performance of Citigroup has made it a promising and potentially, a stock worth following.