Citigroup: Earnings and Revenue Fall, Beat Estimates

by Christopher Freeburn | July 16, 2012 9:41 am

Citigroup (NYSE:C[1]) reported second-quarter earnings[2] of $2.9 billion, down 12% from the same period last year.

Revenue for the second quarter was $18.64 billion, down from $20.62 billion in 2011.

Adjusted EPS came in at $1, down from $1.09 last year, but easily topping the 89 cents expected by Wall Street, CNBC noted.

Investors liked the results. Shares of Citigroup rose about 3% in pre-market trading on Monday.

Citigroup’s profits for the quarter were somewhat dented by a $424 million loss from the sale of its stake in Turkish bank, Akbank. Revenue from its investment banking unit also fell 21% to $854 million as the European debt crisis scared investors away from the continent.

But the bank’s earnings included a reduction of $984 million in financial reserves set aside to cover bad loans, spurred by a increase in on-time loan repayments by customers.

Last week JPMorgan Chase (NYSE:JPM[3]) shook off credit derivatives trading losses to beat analysts’ earnings estimates[4]. Wells Fargo (NYSE:WFC[5]) also posted solid quarterly profits and revenues[6].

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