17 October 2022 | Other

Citigroup earnings exceeded expectations

On Friday, October 14, earnings estimates for Citigroup Inc., i.e. the largest financial conglomerate, exceeded market expectations for the third quarter. The reason is a series of interest rate hikes by the Federal Reserve (Fed), influencing the bank's lending activity. Thus, the decline in other areas, including investment and trading, has been offset. 

After several years of near zero interest rates, banks are recording significant gains in net interest income due to higher benchmark lending rates. The Fed is still tightening its monetary policy to combat soaring inflation. 

However, the U.S. central bank's aggressive stance has raised fears of an impending economic slowdown. These actions have contributed to the halt of investment banking activity, turmoil in financial markets, and forced companies and households to suspend their borrowing plans.

"We don't think a financial crisis is coming ... on a scale close to what we've seen," Chief Financial Officer Mark Mason said in a phone call. "We are ready for any eventuality, and we are constantly monitoring the economic environment." 

Citigroup said earnings were $1.5 per share, beating analysts' forecast of $1.42, excluding some items. The company's earnings were also up 6%, crossing the $18.5 billion mark.

Company MarketCheese
Period: 27.06.2025 Expectation: 1351 pips
GBPUSD under pressure from weak UK data and dollar strength
20 June 2025 61
Brent sell
Period: 26.06.2025 Expectation: 200 pips
Oil set to drop without further escalation of Middle East tensions
20 June 2025 60
Period: 30.06.2025 Expectation: 27200 pips
Buying ETHUSD during consolidation with 2800 target amid supply shortage
19 June 2025 82
Period: 25.06.2025 Expectation: 1500 pips
BOJ policy uncertainty pushes USDJPY toward monthly peak
19 June 2025 60
Period: 18.07.2025 Expectation: 2700 pips
Selling SPX to 5700
19 June 2025 29
Period: 30.06.2025 Expectation: 1069 pips
NVIDIA shares poised to rise on AI demand and European expansion
18 June 2025 70
Go to forecasts