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…