Citigroup (NYSE: C) stock is rising in the early trading hours Monday as the bank reported better-than-expected top and bottom-line results.
Citigroup (C) recently released better-than-expected results for the first quarter, thanks to a boost in investment banking fees driven by rising markets and CEO Jane Fraser’s restructuring efforts to optimize the lender’s costs.
Fraser, who assumed the role of CEO in 2021, said in the earnings statement,
“Last month marked the end to the organizational simplification we announced in September.”
She added,
“The result is a cleaner, simpler management structure that fully aligns to and facilitates our strategy.”
Fraser initiated the restructuring efforts last September in response to escalating expenses, and it was reported that earlier this year, she oversaw the reduction of 5,000 jobs.
Citigroup reported revenues of $21.1 billion, beating the analysts’ consensus estimates of $20.4 billion. Revenues for the first quarter of 2024 came slightly lower than the $21.4 billion reported in the same period of 2023.
Net income also outperformed forecasts, reaching $3.4 billion, or $1.58 earnings per diluted share, compared to the anticipated $2.59 billion, or $1.17 EPS. However, it fell short of the $4.6 billion, or $1.14 EPS, reported in the same quarter last year, primarily due to increased expenses, higher credit costs, and a decline in revenues.
Citigroup witnessed a significant surge in investment banking fees during the first quarter, with fees reaching $977 million, up from $740 million during the same period last year.
Citigroup (NYSE: C) Stock Price Action
C stock rose 0.59% to $59.68 in the early trading hours on Monday.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
