The Strategist

Citigroup shows nearly twofold loss in profit in Q1 2020

04/16/2020 - 03:20

Net profit of one of the largest financial corporations in the world Citigroup Inc. decreased by 1.87 times in the first quarter of 2020, up to $ 2.52 billion compared to the same period in 2019, follows from the corporation’s statement.

Håkan Dahlström
Håkan Dahlström
Diluted earnings per share were $ 1.05 versus $ 1.87 a year earlier. According to the results of the reporting period, the revenue of the financial giant grew by 12%, amounting to $ 20.731 billion. Analysts had expected earnings per share of $ 1.59 and revenue of $ 19 billion.

Revenues in the group for working with institutional clients (ICG) grew by 25% in annual terms - up to $12.484 billion, the retail unit (Global Consumer Banking) rose by 1% and amounted to $8.174 billion, revenue in the field of corporate governance (Corporate/Other) fell 6.4 times, to $73 million.

The bank notes a strong impact on performance due to the coronavirus pandemic, and connects the increase in revenue with strong ICG indicators. At that, the decrease in net profit can be explained by higher reserves for recovering losses on loans.

The Citigroup banking group, founded in 1812, has a significant impact on the entire banking sector and the US financial system and is included in the so-called "big four" of the country's banks, along with its main competitors - Bank of America, JP Morgan Chase and Wells Fargo.