Citigroup Reports Increased Q1 Profit Amid Economic Concerns
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.
- 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.