HALISTER: Citigroup 2Q EPS, Trading, Investment Banking Revenues Beat Ests

Citigroup 2Q EPS, Trading, Investment Banking Revenues Beat Ests

(Bloomberg) -- Citigroup 2Q EPS $1.24, no adjustments, est. $1.10.
  • 2Q adj. rev. $17.5b, est. $17.5b
  • NIM 2.86% vs 2.92% q/q as reported in 1Q statement in April
  • Grew loans in consumer and institutional businesses; cut expenses; “significantly” improved efficiency ratio, ROA, ROTCE q/q: CEO Mike Corbat
    • Nearly all net income came from core businesses; still reducing non-core assets in Citi Holdings
    • Utilized deferred tax assets (~$900m); “fuels” ability to generate regulatory capital
  • 2Q fixed income trading rev. $3.47b vs est. $3.14b (Bloomberg survey of 6 ests.)
    • Equities markets trading rev. $788m vs est. $707.5m (Bloomberg survey of 6 ests.)
  • I-banking rev. $1.22b vs est. $972.5m (Bloomberg survey of 5 ests.)
  • 2Q expenses $10.37b vs $10.52b q/q
  • 2Q credit reserve release $256m vs build of $233m q/q
  • Allowance for loan losses $12.3b at qtr end, 1.96% of total loans, vs $14.1b (2.25% of total) y/y
  • Loans $634b at qtr end, little changed y/y (up 2% constant dollars)
  • Citi Holdings rev. down 57% y/y on continued reductions in assets, lower gains on asset sales
  • Tier 1 common ratio 12.5% vs 12.3% q/q
    • SLR 7.5% vs 7.4%
  • Return on avg. common equity 7.0% vs 6.4% q/q
  • Bought back 30m shrs
  • To follow our TOPLive blog for real-time news, analysis on C earnings starting at 8am
  • Call 11:30am, 866-516-9582 pw 98883113
  • PREVIEW BANKS 2Q: JPMorgan Read-Through Good for Citi, Wells
Statement {NSN OACUMCMEWG74 }
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
C US (Citigroup Inc)

People
Mike Corbat (Citigroup Global Markets Inc)

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