2023-07-14 14:41:40
The turnover fell 1% to 19.43 billion dollars in the second quarter with various performances according to the branches.
The American bank Citigroup announced Friday a sharp decline in its net profit in the second quarter. Profitability fell under the combined effect of higher costs and lower revenues, the establishment specifying that it was nevertheless within the milestones of its strategic plan.
“In a complex macroeconomic environment, we continued to see the benefits of our diversified business model and a strong balance sheet,” said Jane Fraser, CEO of the group, quoted in a press release. “We remain focused on the implementation of our strategy, while continuing to simplify and modernize our bank,” she continued, affirming that the establishment was in line with its objectives.
Turnover fell 1% to 19.43 billion dollars (16.58 billion francs) with varying performance depending on the branch. Thus, the “solidity” of services and retail banking in the United States “more than offset” the declines recorded in market activities, investment banking and wealth management (particularly due to a better remuneration of deposits).
But net profit fell 36% year on year to $2.9 billion under the effect of higher expenses (risk management, investments in the commercial branch and financing) but also macroeconomic factors – such as the inflation that reached high levels in 2022– or layoffs in Asia. The results were also affected by the reorganization of its activities in Mexico – Citigroup announced in January its plan to stop its retail banking activities there.
This is part of its strategy to refocus on high net worth clients globally, on credit cards as well as on institutional markets. The results exceeded consensus expectations of analysts at FactSet, who had forecast revenue of $19.34 billion, net income of $2.73 billion and net earnings per share of $1.30 (1. $33 published).
Shortly following the opening of the New York Stock Exchange, Citigroup shares yielded 0.78% to 47.31 dollars.
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