Citigroup shares up after strong first quarter results

Citigroup (NYSE: C) shares rose pre-market on Friday as the bank’s first quarter 2023 financial report showed a strong operational performance. The Citigroup stock price was nearly 2% up in premarket trading, rising above $48.

Citi shares rise after Q1 revenue beat

Among the key metrics for the banking giant, first quarter 2023 net income was $4.6 billion, or earnings of $2.19 per share that came in on revenues of $21.4 billion.

The better-than-expected revenue compared to $19.2 billion from Q1, 2022, showing a 7% increase from when reported net income stood at $4.3 billion, or earnings of $2.02 per share. Citigroup’s earnings per share of $2.19 indicated an 8% increase over the same period last year.

The bank also returned $1 billion in dividends to common shareholders, with a payout ratio of 23%.

Citigroup posts good revenue amid banking sector crisis

Citi’s revenues that topped expectations come after a quarter in which banks faced one of their most tumultuous periods in recent finance and banking history. Commenting on this, Citi CEO Jane Fraser said in a press release:

“Citi delivered strong operating performance, showing good revenue growth and expense discipline despite the tumultuous environment for banks. Our robust and well-managed balance sheet was a source of strength for our clients and we continue making progress in executing our strategy focused on our five core interconnected businesses while simplifying and transforming the firm.”

Citi’s institutional-focused integrated cash management and trade services unit, Treasury and Trade Solutions (TTS), performed “extremely well,” Fraser noted.

According to the Citi chief exec, the division saw significant growth on its non-interest revenue, with this down to a strong showing in cross-border activity. The bank Fixed Income sector also recorded its third best quarter over the past decade, while cards businesses were also signaling new momentum.