Citigroup Climbs After Profit, FICC Beat Estimates

(Bloomberg) -- Citigroup shares are extending pre-market gains, rising 1.2% after 2Q EPS and FICC trading beat. But, the bank said earnings were driven by lower share count and taxes; investors tend to perceive that kind of a beat as low-quality. Plus, revenue reflected a pretax gain on Citi’s Tradeweb investment of about $350m.

Fixed income markets revenue beat Bloomberg MODL’s estimate, falling 4% compared with last year, excluding Tradeweb gain, to $3.32 billion versus an estimate of $2.99 billion. However, the decline was in line with mid-June comments by Citigroup CFO Mark Mason, who said second-quarter fixed-income and equities trading revenue would likely fall by a “mid-single-digit” percentage range from a year ago.

Other banks were rallying, too, with JPMorgan up 0.8%, BofA gaining 0.7%, and Morgan Stanley rising 0.8%. JPMorgan, Goldman Sachs, and Wells Fargo report tomorrow.

For more on Citigroup Second-Quarter Earnings, click here for our TOPLive blog.

To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.net

To contact the editor responsible for this story: Marc Perrier at mperrier@bloomberg.net

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