Summary
Citigroup Inc. reported a second quarter 2022 net income of $4.5 billion, or $2.19 per share, a decrease from $6.2 billion, or $2.85 per share, in the prior-year period. This decline was primarily attributed to higher provisions for credit losses, increased operating expenses driven by transformation and business investments, partially offset by an 11% increase in total revenues to $19.6 billion. The revenue growth was primarily fueled by a 20% increase in Institutional Clients Group (ICG) revenues, driven by strong performance in Services and Markets, benefiting from higher interest rates and client activity. However, the Personal Banking and Wealth Management (PBWM) segment saw a significant 69% decrease in net income due to higher credit costs and expenses, despite a 6% revenue increase. Capital ratios remained robust, with the Common Equity Tier 1 (CET1) capital ratio increasing to 11.9% from 11.8% a year ago. Citigroup continued its strategic exit from international consumer businesses, completing the sale of its Australia consumer business and reporting progress on other exits. The company announced a pause in common share repurchases to build capital in anticipation of upcoming regulatory capital requirement increases. Management expects higher expenses to continue through the remainder of 2022 due to ongoing investments.
Financial Highlights
39 data points| Revenue | $19.64B |
| Operating Income | $9.08B |
| Interest Expense | $3.67B |
| Net Income | $4.55B |
| EPS (Basic) | $2.20 |
| EPS (Diluted) | $2.19 |
| Shares Outstanding (Basic) | 1.94B |
| Shares Outstanding (Diluted) | 1.96B |
Key Highlights
- 1Net income decreased 27% year-over-year to $4.5 billion, or $2.19 per diluted share, primarily due to higher provisions for credit losses and increased operating expenses.
- 2Total revenues increased 11% year-over-year to $19.6 billion, driven by strong performance in the Institutional Clients Group (ICG), particularly in Services and Markets.
- 3The Institutional Clients Group (ICG) saw a 20% revenue increase, but Banking revenues declined 4% (excluding loan hedges) due to lower investment banking activity.
- 4Personal Banking and Wealth Management (PBWM) net income dropped 69% year-over-year to $553 million, despite a 6% revenue increase, due to higher credit provisions and expenses.
- 5Common Equity Tier 1 (CET1) capital ratio improved to 11.9% from 11.8% in the prior year.
- 6Citigroup returned $1.3 billion to shareholders via dividends ($1.0 billion) and share repurchases ($0.3 billion), while pausing further repurchases to build capital.
- 7The company continued progress on its strategic divestitures, completing the sale of its Australia consumer business and reporting progress on other exited markets.