Citigroup Q1 earnings improve on the back of markets, services, commercial banking (NYSE:C)

Citigroup (NYSE:C) store 1.1% increase The bank's GAAP earnings beat average analyst estimates in Friday premarket trading as the bank's personal banking, commercial banking, markets and services segments contributed solid Q/Q profits.

Q4 comes after beat bank It said it has completed its comprehensive restructuring and has made progress in retiring legacy platforms and streamlining its processes.

CEO Jane Fraser said, “With revenue up 8%, Services is performing well and generating very attractive returns.” “Good client activity in equities and spread products led the market to bounce back.” He also noted the momentum in Citi's cards business and solid engagement in its digital payments offerings.

The bank still expects revenues of $80B-$81B in 2024, and pre-markets net interest income will be marginally lower than a year ago. Excluding FDIC special assessments, full-year spending is expected to be $53.5B-$53.8B.

The bank said in its earnings that it continues to evaluate buybacks on a quarterly basis Slide,

Q1 GAAP EPS of $1.58, vs. average analyst estimate of $1.17, – $1.16 in Q4 2023 and $2.19 in Q1 2023.

Revenue of $21.1B compared to $17.4B last quarter and $21.4B a year ago.

Q1 net credit losses totaled $2.30B vs. $1.99B in Q4 and $1.30B in Q1 2023. The total cost of credit came to $2.37B, down from $3.55B in Q4 and up from $1.98B in Q1 2023.

Total operating expenses are $14.2B compared to $16.0B last quarter and $13.3B a year ago.

Total services revenue grew 6% Q/Q and 8% Y/Y to $4.77B. Treasury and Trade Solutions revenues of $3.52B grew 2% Q/Q and 5% Y/Y. Securities Services revenue of $1.25B grew 16% Q/Q and 18% Y/Y.

Marketplace revenue grew 59% Q/Q and fell 7% Y/Y to $5.38B. Fixed income market revenues of $4.15B grew 62% Q/Q and fell 10% Y/Y; Equity markets revenues of $1.22B increased 50% Q/Q and increased 5% Y/Y.

Banking revenue of $1.82B grew 68% Q/Q and 35% Y/Y; Investment banking revenues of $903M grew 36% Q/Q and 35% Y/Y, while corporate lending revenues of $915M more than doubled from $421M in Q4 2023 and grew 34% Y/Y.

US personal banking revenues of $5.18b grew 5% q/q and 10% y/y. Retail services revenue of $1.90B grew 16% Q/Q and 18% Y/Y; Branded card revenues of $2.64b were up 1% q/q and 7% y/y; Retail banking revenue of $638 million declined 7% Q/Q and increased 1% Y/Y.

Fund revenues of $1.70B increased 1% Q/Q and decreased 4% Y/Y. Citigold revenues of $943M rose 3% Q/Q and fell 6% Y/Y. Private bank revenue of $571 million grew 5% Q/Q and 1% Y/Y.

Loans were $675B at March 31, 2024, up from $689B at December 31, 2023; Deposits of $1.31T at end of Q1, unchanged from end of Q4 2023.

Common equity Tier 1 capital ratio was 13.5% versus 13.4% in Q4 and Q1 2023.

conference call out At 11:00 am ET.

Earlier, Citigroup GAAP EPS of $1.58 was down by $0.41, on revenue of $21.1B beaten by $700M