“Amid challenging macroeconomic conditions, we have continued to reap the benefits of our diversified business model,” said the bank’s chief executive, Jane Fraser, in a statement. Although trading clients did not participate, credit card activity increased by more than 10% thanks to strong demand.
“Citi” monitors the return of life to the private financing markets amid the stagnation of offerings
The Liquidity and Trading Solutions division, which Fraser described as the company’s “crown jewel”, saw revenue jump 15% to $3.5 billion, and revenue from Securities Services, which provides depository and collateral management services, increased 15%.
Inflated stocks
Total revenue fell 1% to $19.4 billion, in line with analysts’ median forecast of $19.3 billion. This, combined with higher expenses and credit costs, resulted in net income falling 36% to $2.9 billion.
The rate of return on tangible common stock, a key measure of profitability, fell to just 6.4%, compared with a decline of 25% at rival JPMorgan and 13.7% at Wells Fargo, which reported second-quarter results earlier in the year. Friday.
However, Fraser emphasized the bank’s revenue targets in the medium term. The bank said it aims to achieve returns between 11% and 12%.
2023-07-14 19:57:47
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