(Citigroup.com) Citi bank reported a net income of $6.19 billion or 2.85 per share for the quarter ended June 30. The profit is an increase from 1.06 billion or 38 cents per share last year.
Citi’s profit is attributed to the decision to reduce $2.4 billion in loan reserves following economic recovery. The group had increased its loss reserves by $5.9 billion last year.
The pace of economic recovery and corporate confidence is faster than expected. The banking profits are expected to go up with the vaccine rollout and the $1.9 trillion stimulus package.
Citigroup revenue went down by 12% while its loan book shrunk by 3% as customers cut back on their spending and paid their loans during the Covid-19 pandemic.
The group consumer banking reduced by 7% to $6.8 billion in the same quarter.
The bank’s expenses rose to 7%, meaning the bank will miss the 2% to 3% annual estimate.
Citi’s new CEO Jane Fraser aims to reduce the bank’s unprofitable businesses and improve risk and control systems management.
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