Citigroup profit beats estimates on reserve release

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The logo of Citi bank is pictured at an exhibition hall in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha/File Photo

July 14 (Reuters) – Citigroup Inc (C.N) comfortably beat market estimates for second-quarter profit on Wednesday as the economic recovery allowed the bank to release loan loss reserves and offset a plunge in revenue from lower trading and credit card lending.

For the quarter ended June 30, net income jumped to $6.19 billion, or $2.85 per share, from $1.06 billion, or 38 cents per share, a year earlier. Analysts on average had expected a profit of $1.96 per share, according to Refinitiv IBES data.

The bank’s profits were buoyed by its decision to take down $2.4 billion of loss reserves it had built during the pandemic for expected losses that have not materialized. A year ago, it had added $5.9 billion to its loss reserves.

Revenue plunged 12%, loans were down 3% and expenses rose 7%.

Jane Fraser, who became CEO earlier this…

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