Citi Flags Higher H2 Expenses, Stock Drops 5.3% Despite 45% Profit Surge
C sits 52% above its 52-week low of $87.94.
Summary
Citigroup shares fell 5.3% on Tuesday after management surprised investors with guidance for higher second-half expenses, overshadowing a strong Q2 where net income rose 45% to $5.83 billion. The bank is pulling forward $5 billion in investments to gain market share and expects severance costs to exceed the initial $800 million estimate. This follows yesterday's Q2 beat and $30B buyback launch, but the expense outlook spooked the market. Analysts revised estimates: BofA raised its efficiency ratio forecast to 60.3% and 2026 EPS to $11.09, while Jefferies cut 2026-2027 EPS slightly. The reaction reflects high expectations and frustration with muddled messaging on the call.
At the time of this announcement, C was trading at $133.86 on NYSE in the Finance sector, with a market capitalization of approximately $229.6B. The 52-week trading range was $87.94 to $147.96. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.