Citigroup Inc. Up On Earnings, Wells Fargo & Co Down

Citigroup (C) and Wells Fargo (WFC) released their second quarter earnings reports before opening bell this morning. Citigroup came out well ahead of consensus at $1.24 per share for earnings, against the consensus of $1.10. Revenue was about in line with expectations at $17.52. In last year’s second quarter, the bank posted earnings of $1.51 per share on $19.5 billion in revenue.

Wells Fargo posted earnings of $1.01 per share on revenue of $22.2 billion, with earnings in line with expectations and revenues slightly short of the $22.17 billion analysts had expected. In last year’s second quarter, the firm posted $21.3 billion in revenues and $1.03 per share in earnings.

Citigroup’s profit declines

Citigroup’s net income declined from $4.8 billion last year to $4 billion this year. The bank had $634 billion in loans as of the end of the quarter, which was about flat with last year or up 2% in constant collars. Deposits stood at $938 billion as of the end of the quarter, representing a 3% increase or 5% increase in constant dollars.

Citicorp revenues declined 3% to $16.7 billion on the back of a 6% decline in revenues from the GCB banking segment. Citi Holdings revenues lunged 57% to $843 billion as a result of reductions in assets and reduced gains on sales of assets.

Book value per share stood at $73.19, while tangible book value per share was $63.53 as of the end of the quarter, with both metrics up 7% year over year. The Common Equity Tier 1 Capital Ratio increased from 11.4% in the year-ago quarter to 12.5% this year. Citigroup’s Supplementary Leverage Ratio rose from 6.7% last year to 7.5% this year.

Shares of Citigroup moved 0.99% higher to $44.89 in premarket trading this morning.

Wells Fargo’s net income falls

Wells Fargo’s net income declined to $5.6 billion from $5.7 billion, while return on assets was 1.2% and return on equity was 11.7%. The bank recorded a 9% increase in total average loans, bringing it to $950.8 billion. Total average profits climbed 4% to $1.2 trillion. Net charge-offs climbed from 0.3% to 0.39%. The bank’s Common Equity Tier 1 ratio was 10.6% as of the end of the quarter.