It wasn’t long ago that Mike Corbat was a figure of pity among his fellow bank CEOs, presiding over an ever-raging dumpster fire of a Zen-garden-less bank. But would you look at him now?

Citigroup was one of the hardest hit US banks during the 2008 financial crisis. But it's the king of Wall Street so far this year.

Shares of Citi have soared nearly 40% in 2019, outpacing the gains of big banking rivals JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley and Wells Fargo.

That’s no mean feat, given that every one of those banks not named Wells Fargo is having a pretty good year, too. And it continues:

Citigroup said Monday its second-quarter net income rose 7% from a year ago. Quarterly profit was $4.8 billion, from $4.5 billion from a year ago. Per-share earnings were $1.95 a share. Analysts had expected $1.81 a share.

Revenue at the bank was $18.76 billion, up 2% from $18.47 billion a year ago. Analysts polled by Refinitiv had expected $18.5 billion.

The success is going to Corbat’s head a bit. While the topline numbers were good, trading was less good, with revenue down 5% excluding a one-time gain. That’s pretty common among the big banks these days, but Mike Corbat isn’t willing to let this feeling go, even if it means going all Deutsche Bank on Citi’s investment bank.

At Citigroup Inc., bean counting and boring banking are in ascendance. Trading, not so much…. “We’re going to do everything within our power” to meet a goal of a 12% return on tangible equity this year, Chief Executive Officer Mike Corbat said in response to skepticism from analysts regarding the target during a conference call Monday. The firm won’t end planned investments in technology or risk its efforts to improve safety and soundness, he said. “But everything else is on the table.”

Citigroup Reports Profit, Revenue Boost [WSJ]
Citigroup is now the darling of Wall Street [CNN]
Citi CEO Vows Cost-Cutting Success to Continue as Trading Slumps [Bloomberg]

Related

sunflower-corbat

Mike Corbat’s Bosses Finally Think He’s As Good As Brian Moynihan

After six long years, the Citi chief is finally a $20 million man.

citi-horror

Jamie Dimon Saves Citi From Getting Too Much Attention For Its Strong Q4

JPMorgan sees Citi’s 31% trading boost and 12% RoE and raises it 55% and 15%.

By World Economic Forum (Flickr: The Global Financial Context: James Dimon) [CC BY-SA 2.0], via Wikimedia Commons

Infected JPMorgan Employees Haven’t Spread COVID To Bank’s Bottom Line

Citigroup, on the other hand, is still feeling under the weather.

Brian Moynihan/Getty Images

Brian Moynihan, Mike Corbat Paid $24.5M, $19M For Overseeing Wall Street’s Worst Banks Of 2020

Sure, things were bad enough for Corbat to essentially get fired, but not bad enough to keep him from an eight-figure payday.

CorbatLoveLloyd

Citigroup Board Picks The Next Person To Ensure That Mike Corbat Always Feels Like Half A Man

John Dugan is the new chairman of the world's most boring megabank.