Citigroup (NYSE: C) has beat analysts’ expectations for second-quarter profit and revenue. The bank posted profit of $4.79 billion, or $1.95 per share, compared with the $1.80 expected by analysts. This was a 20 percent rise over results from the same quarter of the previous year, when the bank reported profit of $1.63 per share.
A $350 million pretax gain from the initial public offering of electronic bond trading platform Tradeweb helped Citi’s quarterly results. Excluding the impact of the IPO, the bank would have posted $1.83 per share in profit. Tradeweb went public in April in what was then second-biggest IPO of the year.
Citi said revenue climbed 2 percent to $18.76 billion, beating analysts’ $18.5 billion estimate. The result was almost unchanged from the same period a year earlier. Declines in trading and investment banking revenue and losses on loan hedges hurt results.
The bank’s fixed-income markets revenue was disappointing. Fixed-income revenue rose 8 percent to $3.32 billion, but excluding the Tradeweb transaction, the bank would have posted a 4 percent decline in that division. The bank’s equity markets revenue was also disappointing with a 9 percent drop in revenue. Equity markets revenue was $790 million, lower than estimates of $824 million.
The bank’s consumer division was a bright spot in the report, posting its strongest second quarter since 2013. Revenue from consumer banking climbed 3 percent to $8.51 billion, topping projections. Profit rose 11 percent to $1.41 billion, compared to the $1.49 billion estimate of analysts.
