© Reuters. Customers use ATMs at a Citibank branch in the Jackson Heights neighborhood of the Queens borough of New York City, U.S. October 11, 2020. Picture taken October 11, 2020. REUTERS/Nick Zieminski
(Reuters) -Citigroup beat analysts’ estimates for second-quarter profit on Friday as higher interest payments from borrowers partly countered a blow to its Wall Street businesses from a slump in trading.
The bank’s net income tumbled 36% to $2.92 billion, or $1.33 per share, in the three months to June 30.
The drop in Citi’s net income contrasted a 67% jump posted by JPMorgan as it earned more from interest payments and also benefited from the purchase of First Republic Bank (OTC:) and a 57% rise at Wells Fargo (NYSE:).
Meanwhile, net interest income jumped 18% at the most global U.S. lender, mirroring 44% and 29% gains recorded by JPMorgan Chase (NYSE:) and Wells Fargo.
The results come amid rising expectations that the Federal Reserve’s hefty rate hikes that have boosted profits at big U.S. banks in the past few quarters may be nearing an end.
Citi posted a 15% growth each in revenues from its services unit, as well as its crown jewel business treasury and trade solutions (TTS).
The strong performance cushioned a 13% decline in the bank’s markets revenue to $4.6 billion and a 24% plunge in investment banking fees to $612 million.
Excluding one-off items, Citi earned $1.37 per share, topping $1.30 expected by analysts, according to Refinitiv IBES data.
Shares of the New York-based lender were up 1.5% at $48.42 in premarket trading.
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