Citigroup kicks off earning season with a whimper

Normally we see JP Morgan kickoff earning season, but this time Citigroup gets to kick things off. Citigroup reported a beat on fourth quarter EPS at $1.61, higher than the $1.55 analysts’ consensus. Revenue missed with a $17.1 billion print, much lower than the eyed $17.6 billion consensus.

Citigroup shares are lower by 1.4% in the premarket trade as Wall Street focused on the steep 21% decline in fixed income markets. They noted it reflected a challenging trading environment characterized by volatile market conditions and widening credit spreads, particularly in December.

CEO Michael Corbat noted, ““A volatile fourth quarter impacted some of our market sensitive businesses, particularly Fixed Income. However, our ICG accrual businesses – Treasury and Trade Solutions, Securities Services, Private Bank and Corporate Lending – continued their strong performance. And in Global Consumer Banking, we had good underlying growth in U.S. Branded Cards and solid performance from our franchise in Mexico where we have been investing. For 2019, we remain committed to delivering a 12% RoTCE and continuing to improve our operating efficiency during the year.”

US Stocks are poised to open much lower with the Dow set to open lower by 200 points.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya