Citi profit climbs on investment banking surge, services strength
Business
Citi profit climbs on investment banking surge, services strength
(Reuters) - Citigroup's (C.N), opens new tab profit rose in the second quarter, boosted by a 60% jump in investment banking revenue and gains in its services division.
Net income climbed to $3.2 billion, or $1.52 per share, in the three months ended June 30, the third largest U.S. lender said on Friday. That compares with $2.9 billion, or $1.33 per share, a year earlier.
The results come two days after U.S. regulators fined Citi $136 million for making "insufficient progress" in fixing data management problems identified in 2020. Regulators also required the lender to demonstrate it was putting enough resources toward those efforts.
Citi had already booked the penalties and additional investments on the data work in the second quarter.
CEO Jane Fraser is carrying out a sweeping overhaul in an effort to improve the bank's performance, cut costs and simplify its sprawling businesses. As part of the turnaround, Citi aims to shrink its workforce by 20,000 over the next two years.
Revenue in the second quarter came in at $20.1 billion, up 4% from a year earlier, buoyed by a $400 million gain from the conversion and partial sale of Visa stock in May.
Citi now breaks out earnings individually for its five businesses — services, markets, banking, U.S. personal banking and wealth, which were previously housed under broader divisions.
The new structure is part of Fraser's efforts to cut bureaucracy and increase profits. Under it, the leaders of the segments report directly to the CEO.
