Citigroup surpasses expectations

Citigroup Inc. (NYSE: C) reported on Friday second-quarter earnings that beat expectations, while revenue for the period came in slightly below estimates.

Earnings proved $1.63 per share versus $1.56 forecast, while revenue was $18.469 billion versus $18.512 billion expected.

The company said its earnings per share grew by 27% on a year-over-year basis as net income rose 16% to $4.49 billion and as its shares outstanding decreased by 8%. Revenue grew by 2%, as lower revenue in corporate offset growth in institutional clients group and global consumer banking segments.

Shares of Citigroup were down more than 8% for the year heading into Friday’s report, lagging peers such as Bank of America and J.P. Morgan Chase.

Citigroup announced in late June that it would hike its quarterly dividend by 13 cents to 45 cents a share, and buy back $17.6 billion in stock over the next 12 months after passing the Federal Reserve’s annual stress test.

The bank reported better-than-expected earnings and revenue for the first quarter in April. Its results from that time period got a boost from lower corporate taxes and strong trading revenue.

Citi CEO Michael Corbat said, "These results demonstrate good momentum across our franchise and that we are firmly on track to achieve the financial targets we introduced last year at Investor Day.

"During the quarter, we drove strong year-over-year revenue growth in many of our businesses – including our International Consumer franchise, Treasury and Trade Solutions, Equities, and the Private Bank. And we continue to support our clients as evidenced by solid loan growth that was balanced across businesses and geographies"

C shares lost $1.32, or 1.9%, to $67.25