Citigroup Inc (NYSE:C) posted its earnings prior to opening bell this morning, reporting higher-than expected first quarter profits. Not long after the report, shares of the bank’s stock started jumping. At the moment of this writing, shares of Citigroup Inc (NYSE:C) were up 2.72 percent.
Citigroup Inc (NYSE:C) posted a 30 percent rise in profits and reported that its investment banking and fixed-income businesses soared over the expectations of analysts. It reported net income of $3.81 billion or $1.23 per share. Last year the bank posted net income of $2.93 billion or 95 cents per share.
Citigroup Inc (NYSE:C)’s profit was $1.29 per share, excluding an adjustment for accounting. That’s compared to a Bloomberg estimate of $1.17 per share in adjusted earnings. The bank’s revenue rose to $20.5 billion compared to $19.4 billion in the first quarter of last year.
The bank reported a decline in bond trading revenue, which fell to $4.6 billion excluding adjustments, a decrease of 3 percent compared to the same quarter last year. Nonetheless, that amount still beat the expectations of analysts, who predicted numbers between $3.2 and $4.2 billion, according to Bloomberg. Citigroup’s investment banking arm posted $1.1 billion in revenue.
Another bright spot in Citigroup Inc (NYSE:C)’s earnings report was the release of $652 million in loss reserves, with $351 million being from the bank’s Citi Holdings portfolio. That portfolio was greatly affected by the rise in U.S. housing prices, according to Reuters.
The bank’s net-interest income was flat from the same quarter a year ago. Also its operating expenses were 1 percent higher than the same quarter a year ago but 3 percent lower than in its previous quarter.