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Banking, finance, and taxes

Should Citigroup Get More Credit for Q1 Earnings?

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By Chris Lange Updated Published
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Should Citigroup Get More Credit for Q1 Earnings?

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Citigroup Inc. (NYSE: C | C Price Prediction) released its first-quarter financial results before the markets opened on Monday. The firm said that it had $1.87 in earnings per share (EPS) and $18.6 billion in revenue, compared with consensus estimates of $1.80 in EPS and revenue of $18.63 billion. In the same period of last year, the financial giant said it had EPS of $1.68 on $18.87 billion in revenue.

Overall, first-quarter revenues decreased by 2%, reflecting the lower revenues in Equity Markets, as well as mark-to-market losses on loan hedges in Institutional Clients Group and the continued wind-down of legacy assets in Corporate/Other.

In terms of its segments, the bank reported as follows:

  • Global Consumer Banking revenues remained relatively flat year over year at $8.45 billion.
  • Institutional Clients Group revenues decreased 2% to $9.69 billion.
  • Corporate/Other revenues decreased 27% to $431 million.

[nativounit]

At the end of the quarter, loans totaled $682 billion, an increase of 1% from last year, while end-of-period deposits totaled $1.0 trillion, an increase of 3%.

Citigroup’s book value per share of $77.09 and tangible book value per share of $65.55, both as of quarter end, increased 8% and 7%, respectively.

Michael Corbat, Citi CEO, commented:

Our earnings reflect the progress we are making to improve our return on and return of capital. Both our consumer and institutional businesses performed well and we saw good momentum in those areas where we have been investing, such as U.S. Branded Cards, Treasury and Trade Solutions, and Investment Banking. Importantly, our strategy in North America consumer banking is showing good early results as we introduce new products and engage with a broader range of customers, through digital channels.

The bank did not mention any guidance in the report. However, the consensus estimates call for $1.87 in EPS and $18.73 billion in revenue for the second quarter.

Shares of Citigroup closed Friday at $67.42, in a 52-week range of $48.42 to $75.24. The consensus price target is $77.60. Following the announcement, the stock was relatively flat at $67.55 in early trading indications Monday.
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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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