![]() ![]() Payments and transfer over the daily funds transfer limit are allowed. Written request uploaded through Citi Online Non-individual accounts requiring multiple signatories to authorise transactions. Transfers greater than A$100,000 (or foreign currency equivalent). ( Requires registration, including setting up a telephone PIN.) Phone support for sending funds or making payments to accounts with other financial institutions domestically or internationally. Other transaction types: 1 to 5 business days. "These factors remain key pillars underpinning Citi's creditworthiness as it continues to transform into a simpler, sounder bank," Nerby said in a statement.Sending funds or making payments to accounts with other financial institutions domestically or internationally.ĭaily funds transfer limit of $100,000 (or foreign currency equivalent). Peter Nerby, a senior vice president at Moody's Investors Service, took a generally positive view of Citi's second quarter results, highlighting its strong capital levels and solid asset quality ratios. That positive trend set Citi apart from fellow industry titans JPMorgan Chase and Wells Fargo, both of which added to their reserves, citing concerns about commercial real estate loans. And the company's second-quarter provision of $1.82 billion was significantly below the consensus estimate of $2 billion, he said.Ĭiti's provision was also down from the first-quarter level of $1.975 billion. ![]() Nonperforming assets totaled 0.76% of loans, which was better than Cassidy's 0.89% estimate. Gerard Cassidy, an analyst at RBC Capital Markets who covers Citi, said that improved asset quality was a primary factor in the company's stronger than expected earnings. Likewise, total revenues of $19.4 billion edged past analysts' $19.3 billion forecast. Overall, Citigroup reported quarterly net income totaling $2.9 billion, which worked out to $1.33 a share, three cents above analysts' consensus expectations. Still, amidst the general gloom in investment banking, revenue generated by debt capital markets rose 6%, Mason said. The drop-off prompted the $2.4 trillion-asset company to scale back the size of its investment banking operation, which led to $120 million in severance expenses. "The long-awaited rebound in investment banking has yet to materialize," Fraser said. Investment banking remains a significant drag on Citi's overall numbers, with second-quarter revenue declining 24% year over year to $612 million. "That gives us the opportunity to do more with those clients," Mason said, adding that he believes Citi's wealth business has "positive prospects for the balance of the year and through the medium term." retail banking network generated 25,000 wealth referrals between January and May - up 18% over the same period in 2022 - she noted. An effort unveiled by Citi in 2022 to generate more income from its wealth unit has yet to yield fruit in the first quarter, global wealth management revenues declined by 9%.īut Fraser pointed to a number of positive indicators, including increased activity in Asia. Meanwhile, headwinds in the broader economy slowed the bank's wealth and investment banking business lines during the second quarter.Ĭiti's wealth business generated revenues of $1.8 billion, down 5% year over year. "We don't have a large number…in our portfolio, but that is where we're seeing more of the normalization happening on the payment rates," CEO Jane Fraser said on the conference call. To date, the most significant downdraft has come from borrowers with lower FICO scores. "We still expect for both portfolios to hit those normal levels some time at the end of the year," Mason said on a conference call with investment analysts. But fast forward six months, and that will likely no longer be the case. Historically in Citi's branded cards business, the average net credit loss rate ranged from 3%-3.15%, while in its retail services business, the average loss rate ranged from 5%-5.5%.
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