Citigroup's shares are up 30% since CEO Michael Corbat took over in October 2012.
NEW YORK (CNNMoney)
Citigroup (C, Fortune 500) reported a 30% jump in first-quarter net income to $3.8 billion, or $1.23 a share, and a 6% increase in revenue, to $20.5 billion, helped by strength in investment banking.
The latest results beat analysts' estimates for both profit and revenue.
For most banks, beating analysts' estimates is nice but Citigroup is not most banks. It struggled under former CEO Vikram Pandit to gain any traction after a near-death experience during the financial crisis.
Last quarter, Citi's new CEO, Michael Corbat, failed to meet analyst expectations during his first reporting period as CEO. Now it seems that he's starting to make progress.
Related: JPMorgan Chase fails to impress Wall Street
Wall Street wants to believe. Citigroup's shares rose more than 2% Monday.
"Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging," Corbat said in a statement.
Citigroup's shares have rallied 30% since Corbat was announced as CEO in mid-October. Under Pandit's five-year reign, Citigroup's shares lost roughly 90% of their value.
While investment banking revenue jumped, Citigroup saw negligible growth in its consumer banking business.
On a call with reporters Monday morning, Citi's chief financial officer, John Gerspach, said he remains concerned about the economic recovery. "There's not a real confident consumer driving the economy," he said.
Related: Wells Fargo beats expectations even as home lending slows
Corbat has announced plans to make broad cost cuts to reel in what's often seen as Citigroup's unwieldy operating structure and expense base. While expenses were up 1% in the latest quarter, they were down 10% from the prior three-month period. Gerspach said the rise in expenses this quarter was largely due to setting aside more for "incentive compensation."
Back in December, Corbat announced plans to lay off roughly 11,000 Citigroup employees. At the time, Citigroup said the changes would lower expenses by $1.1 billion per year by 2014 and cut revenue by about $300 million. Gerspach said the bank's cost-cutting plans were on track.
Citigroup is the third bank to report earnings, following JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500). Both banks failed to impress Wall Street with their results last week.
Goldman Sachs (GS, Fortune 500), Morgan Stanley (MS, Fortune 500) and Bank of America (BAC, Fortune 500) will release results later this week.
First Published: April 15, 2013: 8:30 AM ET
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