Emerging markets bolster Citigroup result
Capitalising on its emerging market business, Citigroup handily beat expectations on Monday as net income surged 42 per cent in the second quarter.
Citigroup, the US's third-largest bank by assets, reported a profit of $US4.18 billion ($4.56 billion), compared with $US2.95 billion a year earlier. Revenue rose 11 per cent to $US20.48 billion.
"Our businesses performed well during the quarter and these results are well balanced through our products and geographies, especially in the emerging markets, where growth is being challenged," CEO Michael Corbat said.
Under his leadership, the bank hopes for growth to emerging markets, especially in Asia and Latin America. Citigroup is working to whittle down extraneous businesses that do not conform with its global operations, where its securities and lending operations dwarf those of many of its US rivals.
More than 50 per cent of Citigroup's revenue now comes from outside North America. Despite concerns about less-than-stellar growth in emerging markets, profit within Citigroup's international consumer banking business grew by 4 per cent to $US826 million. Revenue rose 5 per cent to $US4.7 billion.
Still, Citigroup's emerging markets business does not entirely inoculate the bank from broader challenges facing the US industry. On Friday, JPMorgan Chase and Wells Fargo reported falls in mortgage banking revenue, eroded by a lull in mortgage refinancing. A sharp rise in interest rates has caused the refinancing boom to sputter.