Citi reveals revenue down 2% from last year in first quarter 2021 earnings report

Citi reported its first-quarter results for the period ending March 31, 2022 on Thursday. The company reported revenue of $4.3 billion on revenue of $19.2 billion, with EPS of 2.02 dollars.

According to the press release, the company is focused on investing in its infrastructure, risk and controls, and technology through 2022. It also cited multiple microeconomic challenges the company will face in the months ahead. to come, particularly around the war in Ukraine and the current crisis. Covid19 pandemic.

“As you heard on Investor Day, we are focused on our transformation, and we are investing in our infrastructure, risks and controls, as well as our talents and our culture, to modernize our bank and make Citi a winning company. I recognize that these investments impact our expenses and our short-term returns. But I strongly believe that success here will not only allow us to meet our regulatory obligations, but also improve our competitiveness and our returns in the future. medium term,” Citi CEO Jane Fraser said on the company’s earnings call.

The drop in revenue, according to Fraser, was due to divestitures, investments in technology and increased expenses. Despite a decline in revenue, revenue increased 36% for the quarter.

“While geopolitics has held back Wealth Management’s performance, we are hiring bankers, improving our client offerings and continuing to add clients in both private banking and Citigold,” Fraser said in the press release.

The increase in spending was mainly due to business investment, with the company hiring client advisors and commercial and investment bankers. The company “also invests in services, wealth and card technology,” Citi CFO Mark Mason said on the call.

According to Mason, credit card revenue fell 1% due to above-average payment rates and higher reward costs. However, new credit card accounts and spending volume both increased by 24%. He said he expects the company to see low-single-digit growth in revenue as well as growth in expenses during the year.

“I expect the macro environment to remain unpredictable, to say the least, against the backdrop of war, which is equally tragic and unnecessary, and a lingering pandemic,” said Fraser in the press release.


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