Citibank delighted shareholders today by losing a mere $2.5 billion in the second quarter, the Wall Street Journal reports. Analysts had expected much worse from the US’ biggest bank by assets, but Citi beat expectations by reducing writedowns and slashing jobs. The results should prove a counterweight to the ghastly results Merill Lynch reported after markets closed yesterday.
Citi suffered $7 billion in writedowns and $7.2 billion more in credit losses, but those figures were half last quarter's hit. JP Morgan and Wells Fargo posted similarly expectations-defying results earlier in the week. “Conditions have eased a little bit,” one analyst said of Citi. “They haven't had a lot of clients run out the door. Now it's just a matter of being more profitable.”