Q2 snap: continues to execute well against plan
On an adjusted basis, Citi delivered a 4% EPS beat with EPS +27% YoY. In our view the numbers were reassuring without being spectacular. While growth in credit card revenues was only +1% YoY the important point is that credit quality remained good and net income within GCB was up 14% YoY. ICG generally delivered stronger revenue growth with TTS revenues up 11% YoY, Private Bank up 7% YoY and Corporate Lending up 22%. However, IB revenues were down 7% YoY as strong ECM and advisory were offset by lower DCM revenues. FICC was also down 6% YoY but Equity trading was up 19% YoY. Overall, both revenues and costs were in line with consensus. The beat was primarily driven by lower provisions and a 1pp lower tax rate. The RoTCE of 10.8% gives a 1H18 figure of 11.0%, above the FY18 target of 10.5%.Citigroup is a financial services holding company whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. The company operates via two primary business segments: Global Consumer Banking, which provides banking services to retail customers through retail banking, Citi-branded cards and Citi retail services; and Institutional Clients Group, which includes banking and markets and securities services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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