(Reuters) – Citigroup Inc reported a rise in second-quarter profit on Friday, driven by a 60 percent increase in investment revenue and gains in its services division.
The third-largest U.S. bank reported profit of $1.52 per share in the period, beating analysts’ expectations of $1.39 per share, according to a consensus LSEG report. Investment fees jumped 60 percent in the second quarter to $853 million.
“Our results demonstrate the progress we are making in executing our strategy and the benefits of our diversified business model,” Citi Chief Executive Jane Fraser said in a statement. The positive results come two days after U.S. regulators fined Citi $136 million for “insufficient progress” in addressing data management issues identified in 2020. The group is currently undergoing a restructuring to improve its management concerns and reduce costs. It now separates profits from its five business lines individually and plans to cut 20,000 employees over the next two years. Operating expenses fell 2% to $13.4 billion as the bank saved money through a reorganization that simplified its structure. But the drop in spending was offset by fines for breaches of consent order sanctions dating back to 2020, and by investments in remediation work.
(Reporting by Tatiana Bautzer in New York and Manya Saini in Bangalore; by Mathias de Rozario, edited by Augustin Turpin)
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