Citigroup, Wells Fargo earnings decline in Q2

By Ovunc Kutlu

NEW YORK (AA) – Earnings at Citigroup and Wells Fargo declined during the second quarter, the companies announced Friday.

Citigroup’s net income fell 13 percent to $4 billion from $4.6 billion compared to the same quarter a year ago.

Revenue was also down 8.8 percent to $17.5 billion during the April-June period, from $19.2 billion.

“These results demonstrate our ability to generate solid earnings in a challenging and volatile environment,” Michael Corbat, Chairman and CEO, said in a statement.

“We will significantly increase the amount of capital returned to our shareholders over the next year.”

After the release of the results, shares of Citigroup fell as much as 1.3 percent to $43.89 on the stock exchange, after closing at $44.47 in the previous session.

At Wells Fargo net income decreased 1.7 percent to $5.6 billion in the second quarter, from $5.7 billion a year ago.

The firm’s revenue rose 4.2 percent, however, to $22.2 billion during April-June period this year, from $21.3 billion the previous year.

“Compared with a year ago, we had solid growth in loans, deposits and customers,” Chairman and CEO John Stumpf said in a statement.

Wells Fargo’s stock value decreased as much as 3.1 percent to $47.41, after closing Thursday at $48.94.

Meanwhile, after beginning the day with new records, the Dow, the S&P 500 and the Nasdaq parked in negative territory on the last trading day of the week.