Citigroup shares surge 13%, as bank benefits from rising interest rates, Tops profit estimates.
Second-quarter earnings of Citigroup beat analysts’ expectations as the firm benefited from rising interest rates and strong trading results.
Of the four major banks to report second-quarter results this week, only Citigroup topped expectations for revenue.
Citigroup CEO Jane Fraser said, "In a challenging macro and geopolitical environment, our team delivered solid results and we are in a strong position".
This is the bank’s biggest post-earnings stock gain in more than two decades, according to Refinitiv data.
Revenue rose a bigger-than-expected 11% in the quarter to $19.64 billion, more than $1 billion over estimates.
As the bank reaped more interest income and saw strong results in its trading division and institutional services business.
Net interest income jumped 14% to $11.96 billion, topping the $11.21 billion estimate of analysts.