New York, July, 15:Vikram Pandit led Citigroup profits surged in the second quarter, it beats Wall Street estimates by significant margin and sending shares of higher in pree market.
Citigroup's Q2 net income rose 22 % to $3.3 billion as the bank lost less money in the form of bad loans. Earnings per share reported $1.09, topping the marker expectation of 96 cents a share. In the previous year, Citigroup earned 90 cents a share. Shares of Citi gained 3 % in premarket trading.
Financial service segment reported $16.3 billion in revenue, slightly lower than the last year due to a revenue drop at Citi Holdings, the unit focused to ridding the company of its toxic assets.
According to Thomson Reuters, analysts expected Citigroup to earn 96 cents a share on revenue of $1.98 billion.
It was the sixth straight quarterly profit for Citigroup, which needed $45 billion in U.S. bailouts to survive amid financial crisis that forced the end of lehman Brother.
Profit growth for the Citigroup has come mainly from the bank less provisioning to cover bad loans, which is not a source of profits long term.
Since December 2010, when the U.S. government sold off the last of its common share stake in Citigroup, Chief Executive Vikram Pandit has been trying to show investors that the bank can move beyond recovery to growth.
"Citi achieved another solid quarter of operating performance as we continue to execute our strategy," Pandit said in a statement.
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