Citigroup has reported a 10.4% increase in its net income for the second quarter of 2024 (Q2 2024) to $3.2bn or $1.52 per diluted share, compared to $2.9bn or $1.33 per diluted share, respectively for the same quarter of the previous year.
In the previous quarter, that is Q1 2024, the American investment bank and financial services company posted a net income of $3.37bn.
The bank’s revenues in Q2 2024 were up by 3.6% to $20.1bn compared to $19.4bn in the prior-year period.
According to Citigroup, the increase in its revenues was driven by growth across all businesses, specifically in banking, US personal banking (USPB) and markets.
The revenue increase also included a gain of about $400m related to the Visa B exchange, which was completed in Q2 2024.
Citigroup’s services unit reported revenues of $4.7bn in Q2 2024, which was 3% more than the $4.5bn reported in the same quarter in the previous year.
The bank’s market business saw a 6% growth in revenues in Q2 2024 at $5.08bn compared to $4.77bn reported in Q2 2023.
Citigroup’s banking revenues increased 38% to $1.6bn in the reported quarter. It was driven by the growth in investment banking and corporate lending.
The American investment bank and financial services company’s wealth and US personal banking (USPB) segments posted $1.8bn and $4.9bn in revenues for Q2 2024, respectively.
Citigroup’s operating expenses in the reported period were down by 2% compared to Q2 2023 at $13.4bn.
The decrease is attributed to the bank’s organisational simplification, stranded cost reductions, and lower repositioning costs.
The investment bank’s end-of-period loans were $688bn at the end of the second quarter, which is 4% more than the prior-year period.
On the other hand, the bank’s end-of-period deposits were $1.3 trillion as of the end of Q2 2024, which is a decrease of 3% compared to Q2 2023.
Citigroup CEO Jane Fraser said: “Our results show the progress we are making in executing our strategy and the benefit of our diversified business model. We achieved positive operating leverage with revenue up 4% and a 2% decline in expenses.
“Services continued to grow, driven by solid fee growth increased activity in cross border payments and new client onboardings.”
