Citigroup stock gains after profit beats expectations, while revenue falls amid 'normalization' in market activity

Shares of Citigroup Inc. inched up 0.3% in premarket trading Wednesday, after the moneycenter bank reported a second-quarter profit that rose nearly six-fold to beat expectations, while revenue fell amid a "normalization" in market activity and lower average card loans. Net income increased to $6.2 billion, or $2.85 a share, from $1.1 billion, or 38 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of $1.97. Revenue fell 12% to $17.47 billion, but topped the FactSet consensus of $17.22 billion. Global consumer banking revenue declined 7% to $6.82 billion, just shy of the FactSet consensus of $7.02 billion, while institutional clients group revenue dropped 14% to $10.39 billion to miss expectations of $10.53 billion. Corporate and other revenue was down 8% to $267 million but beat expectations of negative $47.2 million. Markets and securities services revenue slumped 30% to $4.82 billion, as fixed income revenue slid 43% to $3.21 billion while equity markets revenue grew 37% to $1.06 billion. "The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising," said Chief Executive Jane Fraser. "While we have to be mindful of the unevenness in the recovery globally, we are optimistic about the momentum ahead." Citigroup's stock has gained 10.9% year to date through Tuesday, while the SPDR Financial Select Sector ETF has climbed 24.4% and the S&P 500 has advanced 16.4%.

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