Citigroup's (C.US) results beat analysts' expectations and improve sentiment around the banking and financial sector. The company has definitely benefited from rising US interest rates and has so far been the only one of the four largest Wall Street banks to beat the market expectations of Refinitiv analysts:
- EPS $ 2.19 vs $ 1.68 projected
- Revenues $ 19.64 billion vs. $ 18.22 billion projected
Analysts have recently lowered their estimates for the financial industry, making it easier for Citi to exceed forecasts
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Open account Try demo Download mobile app Download mobile appThe bank recorded an increase in revenues by nearly 11% thanks to good results of the sales department, institutional services and higher interest income:
- Interest income $ 11.96 billion vs. $ 11.21 billion projected by Street Account
The company's profit fell to $ 4.55 billion from $ 6.19 billion a year earlier as some funds that had been set aside to cover potential bed loans. This confirms the growing concerns about the insolvency of some customers, indirectly resulting from interest rate increases and the weakening economy. Additional reserves were also created, among others, by JP Morgan.
The margin on investment banking, as in the case of other banks, decreased, which is indirectly related to the enormous increase in market volatility. The company's investment banking revenues decreased by nearly 46% to $ 805 million, while the results of the interest rate, currency and commodities departments increased.
Citigroup (C.US) shares rose more than 10.0% on Friday and price is currently testing key resistance at $ 49.20, which is marked by previous price reactions, 200 SMA (red line) and 78.6% Fibonacci retracement of the upward wave started in March 2020 Source: xStation5
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