Citigroup (NYSE:C) on Thursday posted results that beat analysts’ estimates for first-quarter profit with strong investment banking revenue and a bigger-than-expected release of loan-loss reserves.
The firm also said it was shuttering retail banking operations in 13 countries across Asia and parts of Europe to focus more on wealth management in markets outside the U.S.
The bank posted profit of $7.94 billion, or $3.62 a share, exceeding the $2.60 estimate of analysts. Revenue of $19.3 billion topped the $18.8 billion estimate.
Citigroup said it had released $3.9 billion in loan loss reserves in the quarter, which resulted in a $2.06-billion gain after $1.75 billion in credit losses in the period. Analysts had expected a $393.4-million provision in the quarter.
The bank said it was exiting consumer operations in Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam
Jane Fraser, who officially became CEO in February, is reporting results for the first quarter at the helm of the country’s third-biggest U.S. bank.
Like the rest of the industry, Citigroup is expected to release some of the money it had previously set aside for anticipated defaults tied to the coronavirus pandemic. The firm, which has sizeable fixed-income trading operations, may also report a boost from trading desks in the quarter.
Shares of Citigroup have climbed 18% so far this year, compared with the 26% advance of the KBW Bank Index. Those shares took on 48 cents to $73.39.
