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Citigroup announced higher net profit and better-than-expected revenue for the first quarter, increasing its stock in premarket trading on Friday.
Here’s how Citigroup’s key metrics compare to expectations.
- $4.6 billion in net profit compared to $4.3 billion in the same period last year
- $21.45 billion in revenue vs. $19.99 billion expected, according to Refinitiv.
Citigroup reported earnings of $2.19 per share for the quarter. It was unclear how close that number compared to estimates, but it seemed like a solid pace.
The bank’s shares rose more than 2%.
A key area investors will look for is how Citigroup is changing its loan loss allowance, which can be a sign of how a bank’s management views the state of the economy. Citigroup announced a total cost of credit of $1.98 billion, slightly higher than the provision for credit losses of $1.89 billion expected by analysts, according to Street Account.
The bank’s deposit flows will likely be a key topic on the call with shareholders and analysts. After the failure of Silicon Valley Bank and Signature Bank last month, many expect the larger banks to have higher deposits from customers who have withdrawn their money from regional banks.
Citigroup said its filings at the end of March were down 3% month-on-month.
Investors will also be looking for more information on CEO Jane Fraser’s turnaround plan. Fraser took over Citigroup in 2021, and its efforts so far have included exiting retail banking businesses in select overseas markets.
On Thursday, Citigroup’s stock was up more than 4% year-to-date, outperforming some of its major peers like JPMorgan Chase and Bank of America.