Jane Fraser, CEO of Citi, says she is satisfied Europe will fall into recession because it faces the impression of the struggle in Ukraine and the resultant vitality disaster.
Patrick T. Fallon | AFP | Getty Photographs
Citigroup posted second-quarter earnings earlier than the opening bell Friday.
Listed here are the numbers:
- Earnings per share: $2.19 vs the $1.68 estimate of analysts surveyed by Refinitiv
- Income: $19.64 billion vs $18.22 billion estimate.
Having a low inventory worth hasn’t protected Citigroup from additional declines. It is the most affordable of the six largest U.S. banks from a valuation perspective, having declined 27% this yr. On Thursday, Citigroup shares hit a contemporary 52-week low.
How will Citigroup CEO Jane Fraser start to show the tide? Fraser has introduced plans to exit retail banking markets exterior the U.S. and set medium-term return targets in March. However there are not any simple solutions.
Financial institution shares have been hammered this yr over considerations that the U.S. is going through a recession, which might result in a surge in mortgage losses. Like the remainder of the trade, Citigroup can be contending with a pointy decline in funding banking income, partly offset by an anticipated increase to buying and selling leads to the quarter.
On Thursday, greater rival JPMorgan Chase posted outcomes that missed expectations because it constructed reserves for unhealthy loans, and Morgan Stanley disenchanted on a worse-than-expected slowdown in funding banking charges.
Bank of America and Goldman Sachs are scheduled to report outcomes on Monday.
This story is creating. Please examine again for updates.
