Citigroup Shares Rise as Earnings, Revenue Beat Estimates
Citigroup, one of the biggest banks in the US is doing better than expected. The released report of Citigroup’s first quarter profit and revenue is higher than analyst had anticipated. The increased revenue and profit has the market responding as shares jumped 1.4% to $45.42. The new and efficient operation under Michael Corbat is showing that the company is headed in the right direction. Unnecessary branches and workers have been laid off to help increase revenue and efficiency. Revenue reported increased to $20.5 billion compared to the $19.4 billion last year. Investors are also responding to the company’s deferred tax assets and mortgage loan-loss reserve release. All of these positive have investors pushing their share prices up.
Despite the slowly recovering economy, Citigroup had to lay off workers and close down branches. As a result, the company has shown to be more efficient, beating analyst expectations and driving the stock prices to go up. In my opinion, Citigroup came out successful with their current approach to cut down cost and increase revenue. If Citigroup keeps up their profit growth, their stock price will continue to grow as investors are looking for more yields.
Written by: Wilson Tang