Citigroup Inc. said Wednesday its second-quarter profit soared thanks to an increasingly bright view of consumer health.
The bank posted a profit of $6.19 billion, or $2.85 per share, compared with $1.06 billion, or $0.38 per share a year earlier. That topped the $1.97 per share that analysts had expected, according to FactSet.
Revenue fell 12% to $17.47 billion. That still topped analysts’ expectations of $17.22 billion.
“The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising,” Chief Executive Jane Fraser said in a release.
A year ago, Citigroup and other big banks were socking away funds to prepare for huge losses on loans to consumers and businesses. But those losses haven’t materialized, and banks have been shrinking their rainy-day funds. In the second quarter, Citigroup freed up about $2.4 billion in loan-loss reserves, boosting its profit.
