Citi's 2Q Profit Falls 12%, Still Beats Earnings Estimates |
| Wall Street Journal - Jul 16, 2012 |
Citigroup Inc.'s (C) second-quarter profit fell 12% from a year earlier on a decline in revenue and a smaller benefit from releasing reserves set aside for losses from defaulting loans.
Citi's focus has been on growing abroad and cutting expenses, but second-quarter results were caught in the cross current of the rising dollar. At the same time, the results benefited in North America from the booming mortgage business driven by low interest rates and government programs for struggling home owners.
The $2.9 billion profit, flat from the first quarter, and core earnings of $3.1 billion excluding one-time gains and charges beat the average analyst estimate of $2.8 billion.
Revenue fell 9.7% to $18.6 billion from a year earlier. The prior quarter included a large loss on the valuation of Citi's debt; in the second quarter, Citi booked a small $219 million gain.
Citi shares recently were up 1.6% to $27.08, which is lower than a 3% to 4% rise in pre-open activity.
Read Full Article from Wall Street Journal
- Posted: 2012-07-16 10:59:40
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