Citigroup Results Top Estimates on Gains in Fixed Income and Equities Trading

Citigroup has reported first-quarter earnings that exceeded analysts’ expectations, driven by strong performance in fixed income and equities trading, Hugh Son reported for CNBC.

Citi's profit rose 21% to $4.1 billion, or $1.96 per share, while total revenue grew 3% to $21.60 billion. I Photo: Matt Buck Flickr

Fixed income traders brought in $4.5 billion in revenue amid heightened activity in currency and government bond markets — an 8% increase from a year earlier and above the $4.33 billion StreetAccount estimate.

Meanwhile, equities trading revenue surged 23% to $1.5 billion, topping the $1.4 billion estimate, thanks to increased market volatility and higher client activity.

Overall, profit rose 21% to $4.1 billion, or $1.96 per share, while total revenue grew 3% to $21.60 billion. The bank also reported lower expenses compared to the year-earlier period.

CEO Jane Fraser emphasized that the bank was earning investor confidence and remained focused on executing its strategy across five major divisions.

“We’ve built a diverse set of businesses that will perform in a wide variety of macro scenarios,” Fraser said. She also addressed concerns about the US economy amid

Trump’s restructuring of global trade deals, stating: “When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the US will still be the world’s leading economy, and the dollar will remain the reserve currency.”