Citi stock gains 2.9% after Q1 earnings beat, plan to focus global consumer unit

Apr. 15, 2021 8:23 AM ETCitigroup Inc. (C)By: Liz Kiesche, SA News Editor9 Comments
  • Citigroup (NYSE:C) stock rises 2.9% in premarket trading after Q1 earnings beat consensus and the company announces a plan to concentrate its Global Consumer Banking unit in four wealth centers.
  • Q1 net income rose on lower cost of credit, while revenue fell 7% Y/Y as higher revenue in Investment Banking and Equity Markets were more than offset by lower rates, the absence of prior mark-to-market gains on loan hedges in the Institutional Clients Group and lower card volumes in Global Consumer Banking.
  • Q1 EPS of $3.62 vs. consensus of $2.53; compares with $2.08 in Q4 2020 and $1.06 a year ago.
  • Global Consumer Banking segment will exit 13 markets as it focuses its presence in Asia and EMEA on four wealth centers — Singapore, Hong Kong, the UAE, and London.
  • The affected businesses include consumer franchises in Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
  • Cost of credit was a benefit of $2.1B vs. cost of $7.0B in the year-ago quarter.
  • Q1 Global Consumer Banking net income of $2.18B vs. $1.30B in Q4 and loss of $740M in Q1 2020.
  • Q1 Institutional Clients Group net income of $5.94B, up from $3.35B in Q4 2020 and $3.63B in Q1 2020.
  • Conference call at 10:00 AM ET.
  • Previously (April 15): Citigroup EPS beats by $1.03, beats on revenue

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