Citigroup (C) - Get Report posted better-than-expected second quarter earnings Wednesday as the bank followed its Wall Street rivals in flattering its bottom line with the release of credit loss provisions booked during the peak of the coronavirus pandemic.
Citigroup said earnings for the three months ending in June were pegged at $2.85 per share, up nearly five fold on an adjusted basis from the same period last year and firmly ahead of the Street consensus forecast of $1.98 per share. Group revenues, Citigroup said, fell 11.5% to $17.5 billion, just ahead of analysts' estimates of a $17.3 billion tally.
Citigroup also said it released around $2.4 billion linked to credit loan provisions set aside during the peak of the coronavirus pandemic.
“The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising," said CEO Jane Fraser. "We saw this across our businesses, as reflected in our performance in Investment Banking and Equities as well as markedly increased spending on our credit cards."
"While we have to be mindful of the unevenness in the recovery globally, we are optimistic about the momentum ahead," she added.
Citigroup shares were marked 2.7% higher in early trading immediately following the earnings release to change hands at $70.16 each, extending its year-to-date gain to around 13.8%.
Earlier this week, JPMorgan Chase (JPM) - Get Report posted a 37% increase in investment banking revenues that helped offset an 8% slump in net interest income.
JPMorgan said earnings for the three months ending in June were pegged at $3.78 per share, up 174% from the same period last year and well ahead of the Street consensus forecast of $3.18 per share.
Goldman Sachs Group (GS) - Get Report also used a 36% surge in investment banking revenues, alongside a topline gain in asset management, to post stronger-than-expected earnings of $15.02 per share Tuesday, nearly 140% higher than last year's tally and firmly ahead of the Street consensus forecast of $10.24 per share.