Later this week, the Delaware-incorporated New York City-headquartered American multinational lender and financial services provider Citigroup Inc. or Citi, topped analysts’ expectation for first-quarter profit by an overwhelming margin, as a rebound in broader economy following a ground-breaking reopening alongside an upsurge in investment banking activities bode well for the Wall St.
lender. On top of that, Citi, often contemplated as one of the big-four lenders alongside JPMorgan, Bank of America and Wells Fargo, had quoted saying on its quarterly earnings’ report that the multinational lender would exit most of its Asian consumer businesses alongside EMEA, as the newly appointed Chief of the United States’ third largest lender, Jane Fraser, seemingly had begun to unsheathe her fiscal weaponries.
Nonetheless, followed by the reveal of a robust quarterly earnings, shares’ prices of Citigroup, which had been formed through a merger between banking giant Citicorp alongside financial tycoon Travellers back in the 1998s, ended the week broadly flatlined at $72.45 a share.
Citigroup first-quarter profit beats estimate, set to exit most Asian business
According to Citigroup Inc.’s first-quarterly earnings’ report, the US lender had reported a profit of $7.94 trillion, nearly 200 per cent rise from a profit of $2.54 billion registered at the same time a year earlier, as the Wall St.
lender had released fresh capitals which it had set aside to cover up pandemic-led loan defaults alongside a boom in listed shell company deals that had ramped up the lender’s earnings from underwriting across the Wall Street.
In tandem, Citigroup Inc. Chief Executive Fraser’s latest move to exit consumer businesses in 13 Asian and EMEA markets including Australia, India and China came up as a turnaround strategy to bring the lender back into profitability while improving shares’ performance, which had been broadly underperforming over the past decade compared to those of Bank of America and JPMorgan Chase & Co., said the analysts.