Citi’s earnings show once again that the game on Wall Street these days is cost cutting.
Citigroup second quarter earnings showed the long troubled bank is pulling itself out of its hole.
What you need to know: Net income for Citigroup C 3.47% rose 18% to to a little over $4.7 billion for the second quarter. That translated to earnings per share of $1.53. Analysts had been expecting $1.34. The bank earned $1.43 per share in the same quarter a year ago. Despite the better than expected earnings, Citigroup’s revenue was basically flat from a year ago. The bank had sales of nearly $19.5 billion in the quarter. The biggest reason for the earnings increase was cost cutting. Citi’s expenses fell 30% from a year ago. Citi’s expenses last year were higher than normal because of the bank’s large legal settlement with the government over mortgage bonds. Without that, and an accounting adjustment, expenses would have fallen 7%, or by $800 million.
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