Citigroup Reports Increased Q1 Profit Amid Economic Concerns
Lede
Citigroup's Q1 profit increased as it earned more from borrowers paying interest on loans, but the bank also set aside provisions against a slowing economy and saw a decrease in investment banking revenue.
Summary
- Citigroup's Q1 net income rose 7% to $4.6 billion, or $2.19 per share, from $4.3 billion, or $2.02 per share, in the same period last year.
- The rise in profit was attributed to an increase in interest income from borrowers paying loans.
- However, Citigroup also set aside $241 million in provisions due to concerns about a slowing economy, compared to a reserve release of $138 million in Q1 2022.
- Citigroup's investment banking revenue sank 25% from $774 million a year ago, due to a sluggish market for deals.
- The bank also slipped to ninth place in the list of financial advisors based on deal value, according to Dealogic data.
- The global banking sector has faced recent challenges, including the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value.
- In Europe, Credit Suisse was rescued by rival UBS Group AG in a government-backed takeover.