Citigroup Q2 revenue reaches $24.77B as big banks kick off earnings

Citigroup reported second-quarter revenue of $24.77 billion and earnings per share of $3.15, joining four major US bank peers in releasing results before the open Tuesday.

The results landed as the largest US banks posted a collective beat. Bank of America reported a 27% jump in net income to $9.1 billion, or $1.21 per share, topping the $1.12 consensus, with revenue of $31.6 billion exceeding the $30.67 billion estimate, according to its earnings release. JPMorgan Chase, Goldman Sachs and Wells Fargo also reported before the bell.

Revenue of $24.77 billion compared with $24.66 billion in the first quarter, which had risen 14.1% from a year earlier. The company did not immediately disclose segment-level details, including net interest income, trading revenue breakdown or loan loss provisions, in its initial release.

The results come after Citigroup beat analysts' revenue expectations in the first quarter but has missed Wall Street's revenue estimates multiple times over the prior two years, according to a preview note from StockStory. The stock was unchanged over the past month through Monday, trailing the 4.2% average gain for bank stocks during the same period.

The broader bank earnings day arrives as the S&P 500 and Nasdaq faced pre-market pressure, with the S&P 500 down 0.8% and the Nasdaq off 1.6%, reflecting a risk-off tone across US equities. Citigroup's results will test whether the bank can sustain momentum in its institutional clients group, which includes trading and investment banking — two areas that have driven upside for peers this quarter.

Citigroup, the fourth-largest US bank by assets, has been executing a multiyear simplification strategy under CEO Jane Fraser, shedding consumer banking operations in several international markets to focus on its core institutional and wealth businesses. The second-quarter results offer an early read on whether that strategy is gaining traction as dealmaking activity picks up across Wall Street.

Wall Street's trading and investment banking rebound is broadening, based on the collective results from the largest US banks. Investors will watch the Citigroup earnings call for updates on expense management, loan growth and the trajectory of net interest income.

This article is for informational purposes only and does not constitute investment advice.