Watch Citigroup’s first-quarter earnings report due out Tuesday morning. Currently, analysts estimate the company will report earnings of $1.85 per share and revenue of $21.29 billion. The much-anticipated report is expected to be released sometime before the opening bell. It will set the tone for the bank’s resilience in a quarter defined by high market volatility.
The provision for credit losses of $2.57 billion is a sign of Citigroup’s caution in light of economic uncertainties. Many analysts have recently projected robust trading revenue. Of that, they project fixed income will make up $4.33 billion, with equities bringing in approximately $1.4 billion. This foreshadows Citigroup’s trading division, which is more focused on fixed income than on equities.
Expectations have been heightened as recent performances among other big banks lay the groundwork toward what should be another solid Citigroup report. Both JPMorgan Chase and Morgan Stanley reported earnings well north of analysts’ expectations on equities trading. They took advantage of the market turmoil that characterized the past quarter. In this sector, Goldman Sachs posted better than anticipated results. These results illustrate the intense competition in the banking industry. Universities are already taking advantage of these changing market dynamics to increase their short-term trading revenues.
Citigroup has struggled this year, with shares down 10%. This decline is somewhat tied to bigger problems facing the banking industry. One of those reasons being President Donald Trump’s tariff policies. The selloff in bank stocks has raised questions about the overall strength of financial institutions and their ability to navigate an uncertain economic landscape.
Speaking of earnings, Citigroup is preparing to announce its third-quarter earnings. Investors and analysts are undoubtedly keeping a close eye, especially in light of the quarter-over-quarter recent concerted efforts of its competitors. The data helps show just how well Citigroup has managed its assets. It’s a better indicator of how the bank has responded to changing market dynamics over the last quarter.