Citigroup Profit Beats Estimates on Fixed-Income Rebound

  • Net income drops 17% as consumer-banking revenue declines
  • Credit costs fall 15% as fewer loans default in second quarter

Citigroup Tops Profit Estimates on Fixed-Income Trading

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Citigroup Inc.’s second-quarter profit fell 17 percent on lower revenue from consumer banking, beating analysts’ estimates as fixed-income trading rebounded and the firm set aside less money for soured loans.

Net income dropped to $4 billion, or $1.24 a share, from $4.85 billion, or $1.51, a year earlier, the company said Friday in a statementBloomberg Terminal. Chief Executive Officer Michael Corbat had predicted a roughly $3.5 billion quarterly profit in early June. Twenty-seven analysts surveyed by Bloomberg projected earnings-per-share of $1.10 -- in line with his forecast.