Thursday 24 July 2014
 
»
 
»
Story

Citigroup Q2 profit increases 42pc

New York, July 16, 2013

Citigroup posted a 42 per cent increase in quarterly profit, as stronger home prices reduced mortgage losses and bond trading revenue jumped, underscoring the bank's recovery since the financial crisis.

Still, storm clouds lie ahead for the third-largest US bank by assets as rising bond yields in the US are expected to cut into debt underwriting volume, and slowing growth in emerging markets may cut into profit from overseas, reported the Gulf Daily News, our sister publication.

The biggest boosts in profit came from its securities and banking unit, where bond trading revenue rose 18 per cent, while stock trading revenue soared 68 per cent, and underwriting and advisory was up 21 per cent.

At the Citi Holdings unit, which houses businesses and assets the bank is looking to shed, the bank set aside less money to cover bad mortgages as the US housing market showed signs of recovery.

The results underscored how the bank is returning to normal after getting walloped during the financial crisis and needing three government rescues.

"Citi is a restructuring story and it is an emerging markets story," analyst Fred Cannon of Keefe, Bruyette & Woods said before the company reported results. Adjusted net income at the third-largest US bank by assets rose to $3.89 billion, or $1.25 per share, in the second quarter, from $3.08 billion, or $1 per share, a year earlier.

Adjusted results excluded the positive impact of changes in the value of the company's debt.

Analysts, on average, expected earnings of $1.17 per share, excluding some items.

Revenue from fixed income markets, which is part of the securities and banking unit, rose to $3.37 billion from $2.86 billion, while equity market revenue soared to $942 million from $561m. Citigroup's net credit losses declined to $2.61 billion from $3.49 billion as higher house prices lifted the value of the home mortgage assets held since the financial crisis. – TradeArabia News Service




Tags: Citigroup | profit | Mortgage | quarter |

More Finance & Capital Market Stories

calendarCalendar of Events

Ads

Buy high quality China wholesale Health & Beauty , Electronics, Sports & Outdoors , Computers, Video Games, Toys & Hobbies Cell Phones, Automobiles and other wholesale products directly from reliable Chinese wholesalers or Factories on DHgate.com