Washington, Jul. 15, (dpa/GNA) – US investment bank Citigroup reported second-quarter net income of $2.92 billion, a decline of 36% from a year ago.
Earnings per share was $1.33 compared to $2.19. Excluding divestiture-related impacts, earnings per share was $1.37 compared to $2.17. The company said the decline was primarily driven by higher expenses, higher cost of credit and lower revenues.
Analysts on average had expected the company to earn $1.30 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
Second-quarter revenues were $19.4 billion, compared to $19.6 billion, previous year. Analysts on average had estimated $19.27 billion in revenue.
TTS revenues were up 15% driven by NII and NIR. Card revenues increased 15% from a year ago. Net interest income was $13.9 billion, an increase of 16% from prior year. Non-interest revenue was $5.54 billion, down 28%.
Expenses were up 9% year-over-year to $13.6 billion. Credit costs were $1.8 billion, up 43% from last year. For fiscal 2023, Citigroup projects revenues, excluding divestiture-related impacts, in a range of $78 billion to $79 billion.
Citigroup plans to increase quarterly dividend in the third quarter to $0.53 from $0.51. The company will continue to make buyback decision on a quarter-by-quarter basis.
End-of-period loans were $661 billion, up 1% from prior year. End-of-period deposits were $1.3 trillion, largely unchanged from previous year.
The company ended the second quarter with a CET1 ratio of 13.3%.
Shares of Citigroup are up 1% in pre-market trade on Friday.
GNA