Shares in Citigroup (C) climbed 2.3% in premarket trading Friday after the Wall Street bank topped consensus estimates for second-quarter earnings.
Citi posted Q2 earnings per share (EPS) of $1.52, topping the consensus projection of $1.40. Revenue for the quarter matched the consensus estimate of $20.1 billion.
Banking revenue stood at $1.63 billion, above the estimated $1.55 billion.
Meanwhile, investment banking revenue was $853 million, slightly below the estimate of $870.4 million. This marks a 60% jump, which comes as a prolonged industry-wide slump in deals finally shows signs of a meaningful recovery.
Total loans amounted to $687.7 billion, surpassing the estimate of $680.54 billion. Services revenue was $4.68 billion, falling short of the $4.82 billion estimate, while wealth revenue reached $1.81 billion, exceeding the estimate of $1.73 billion.
The results were announced just two days after U.S. regulators fined Citigroup $136 million for "insufficient progress" in resolving data management issues identified in 2020. Regulators also mandated that Citi demonstrate adequate resource allocation towards these efforts.
Citi had already accounted for these penalties and additional investments related to the data issues in the second quarter.
CEO Jane Fraser is leading a comprehensive overhaul to improve the bank's performance, reduce costs, and simplify its operations. As part of this turnaround, Citi plans to reduce its workforce by 20,000 over the next two years.
The bank now reports earnings separately for its five business units: services, markets, banking, U.S. personal banking, and wealth, which were previously part of broader divisions. This new structure is intended to streamline operations and boost profits, with the leaders of each segment reporting directly to the CEO.