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US bank Citigroup (C) reported better-than-expected first-quarter results on Friday, as higher interest rates offset lower activity by investment bankers and brokers.
The establishment’s turnover increased by 12% to reach $21.4 billion, driven mainly by the increase in interest it earns on loans granted to its customers.
Its net profit climbed 7% to $4.6 billion.
The group’s share price rose more than 2% in electronic trading prior to the opening of the New York Stock Exchange.
“Citi delivered strong operating performance, posting good growth and remaining disciplined on spending in the tumultuous environment for banks,” Citi CEO Jane Fraser said in the statement.
The world of finance was indeed shaken up in March by the close failures of three American banks, but the system has since stabilized.
Citigroup still set aside $241 million in additional reserves to deal with potential customer defaults, “primarily due to macroeconomic deterioration and higher card balances” in the retail banking division. and wealth management.
The turnover generated by bankers advising companies on takeover, IPO or fundraising operations fell by 25%, the bosses being more cautious in a context of rising interest rates. interest, inflation and uncertainty about the global economic situation.
Revenue from the bank’s brokerage business fell 4%.