Citigroup Inc. (NYSE:C) shares rose more than 13% on Friday following the company’s reported Q2 results, with EPS of $2.19 coming in better than the Street estimate of $1.65. Revenue was $19.6 billion, beating the Street estimate of $18.35 billion.
The company’s total IB revenues rose 6% year-over-year during Q2, due to a 25% rise in markets revenues, partially offset by a 46% fall in IB fees. Quarterly net interest income rose 9% quarter-over-quarter. While much of this strength came from the bank’s trade and treasury business, due to higher interest rates, consumer developments were also reassuring. In particular, branded card loans grew by 5% quarter-over-quarter and interest yields on these loans rose.
However, risks to the business remain elevated, given general economic uncertainties. For instance, the company must confront regulatory headwinds, strategic change and non-core business disposals (including Russia).