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Citigroup posted worse than expected results before the market as lockdown related credit-loss reserves soared to $4.89 billion from $20 million. $C reported after other money center banks JPMorgan Chase $JPM, Wells Fargo $WFC.

Citigroup

Citigroup Inc NYSE: C · Report Before Open Tuesday

$1.05 Missed $1.83 EPS Forecast And $20.70 Beat $18.98 billion Forecast in Revenue

Earnings

Citigroup (NYSE: C) first quarter earnings were EPS of $1.05 on revenue of $20.7 billion as Credit-loss reserves soared to $4.89 billion from $20 million. Citigroup earnings were expected to slip 2% to $1.83. Revenue was expected to tick 2% higher to $18.98 billion.

Analysts focus on the bank’s cost-ratio outlook for 2019. With the recent market turmoil there will be eyes on variables including geopolitics, loan growth, capital markets revenue and expense outlooks. 

Given that, in the conference call management’s take on the economy, global economic growth and the health of capital markets will be scrutinized. Indications about card margins and growth in North America retail banking with updates on the firm’s national digital bank and its growth prospects in Mexico and Asia are all key data points. Market risks and the Fed's so called more flexible policy look for investment banking pipeline talk and credit quality.

Citigroup Inc NYSE: C

Market Reaction Pre-market $42.95 −2.47 (-5.44%)

 

Citigroup Earnings Trend Q1 2020

Highlights

  • Credit-loss reserves soared to $4.89 billion from $20 million.
  • Consumer banking revenue rose 1% to $8.2 billion.
  • Fixed income trading revenue jumped 39% to $4.79 billion
  • Equities revenue surged 39% to $1.17 billion.
  • Institutional clients revenue climbed 25% to $12.5 billion.

Citigroup Q1 2020 Earnings  

 

Caution hangs over the sector as auto and student loans also overhang the banking and finance sectors.  The new fall in home prices has challenged optimism for the mortgage business and banks profits thereto.

Source: Citigroup

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