Citigroup Inc (NYSE:C)’s second quarter earnings report was ahead of analyst estimates, and shares of the bank’s stock started jumping after the report. The stock rose as much as 2 percent in pre-market trading.
Citigroup’s profits climb 42 percent
The bank’s earnings per share for the second quarter of the year were $1.25, while its revenue was $20.5 billion. Profits rose 42 percent from the same quarter a year ago as revenue from Citigroup Inc (NYSE:C)’s capital markets and demand for loans in emerging markets increased. Revenue at the bank rose 11 percent from the same quarter a year ago.
Analysts were expecting the bank to report earnings of $1.17 per share on revenue of $19.76 billion.
Loan loss allowance falls
The bank also reported a decline in its allowance for loan losses, which fell from $27.6 billion or 4.3 percent of total loans at the end of the second quarter last year to $21.6 billion or 3.4 percent at the end of the second quarter this year.
The bank’s asset quality rose while total non-accrual assets dropped to $10.1 billion, a 12 percent decline compared to the same quarter last year.
Other accomplishments announced
Citigroup Inc (NYSE:C) Chief Executive Officer Michael Corbat reported progress in a number of areas at the bank.
“We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010,” Corbat said in a statement. “We again consumed a modest amount of DTA, bringing the total utilized to about $1.3 billion for the first half of the year.”
Citigroup’s capital levels, book value per share rise
At the end of the second quarter, Citigroup Inc (NYSE:C) reported a book value per share of $63.02 and tangible book value per share of $53.10. The bank’s Basel I Tier 1 Capital Ratio was reported to be 13.3 percent, while its Basel I Tier 1 Common Ratio was 12.2 percent. The bank estimates that its Basel III Tier 1 Common Ratio was 10 percent and its Basel III supplementary leverage ratio was 4.9 percent.