Citigroup tops profit estimates as bank benefits from rising interest rates, shares surge 13%

Shares of the company surged 13% in New York trading, the bank’s biggest post-earnings stock gain in more than two decades

Profit declined 27% to $4.55 billion, or $2.19 per share, from $6.19 billion, or $2.85, a year earlier, the New York-based bank said in a statement, as it set aside funds for anticipated loan losses. But earnings handily exceeded expectations for the quarter as analysts have been slashing estimates for the industry in recent weeks.

Revenue rose a bigger-than-expected 11% in the quarter to $19.64 billion, more than $1 billion over estimates, as the bank reaped more interest income and saw strong results in its trading division and institutional services business. Net interest income jumped 14% to $11.96 billion, topping the $11.21 billion estimate of analysts surveyed by Street Account.

Of the four major banks to report second-quarter results this week, only Citigroup topped expectations for revenue.

“In a challenging macro and geopolitical environment, our team delivered solid results and we are in a strong position to weather uncertain times, given our liquidity, credit quality and reserve levels,” Citigroup CEO Jane Fraser said in the release.