Citigroup Inc (NYSE:C) stock fell 3.23% (As on July 12, 11:22:11 AM UTC-4, Source: Google Finance) after the company posted second-quarter results that topped expectations for profit and revenue on a rebound in Wall Street activity. The bank said net income jumped 10% from a year earlier to $3.22 billion. Banking revenue was $1.63 billion, above the $1.55 billion estimate. Wealth management revenue reached $1.81 billion, surpassing the expected $1.73 billion. U.S. personal banking revenue came in below estimates at $4.92 billion versus $5.12 billion expected. Further, Equities trading revenue rose 37% to $1.5 billion, driven by strength in derivatives and a rise in hedge fund balances, roughly $300 million more than the StreetAccount estimate. Fixed income revenue dipped 3% to $3.6 billion, essentially matching analysts’ expectations, on lower activity in rates and currency markets. Investment banking revenue surged 60% to $853 million, driven by strong issuance of investment-grade bonds and a rebound in IPO and merger activity from low levels in 2023.

C in the second quarter of FY 24 has reported the adjusted earnings per share of $1.52, beating the analysts’ estimates for the adjusted earnings per share of $1.39. The company had reported the adjusted revenue growth of 4 percent to $20.14 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $20.11 billion. This increase in revenues was driven by growth across all businesses, particularly in Banking, U.S. Personal Banking (USPB) and Markets. The revenue increase included an approximate $400 million gain related to the Visa B exchange completed in the second quarter 2024. A significant portion of this gain was reflected in Markets, with the remainder in All Other. The revenue growth across the businesses was partially offset by a decline in All Other. Citigroup cost of credit was approximately $2.5 billion in the second quarter 2024, compared to $1.8 billion in the prior-year period, primarily driven by higher cards net credit losses, partially offset by a lower allowance for credit losses (ACL) build in the current period. C’s total allowance for credit losses was approximately $21.8 billion at quarter end, compared to $20.1 billion at the end of the prior-year period. In addition, Services revenues of $4.7 billion were up 3%. Treasury and Trade Solutions revenues of $3.4 billion were largely unchanged, as a 14% increase in non-interest revenues was offset by a 3% decrease in net interest income.