Citigroup (Fortune 500) shares rose 2% early Monday after the bank reported earnings that topped forecasts even as revenue fell short of estimates.,
The bank reported a 12% decline in net income to $2.9 billion, or 95 cents a share. Excluding items, earnings per share came in at $1. Analysts had expected Citi to earn 89 cents a share.
Citigroup’s revenue came in at $18.6 billion in the second quarter, down 10% from the prior year and falling short of the $18.8 billion analysts had expected.
The bank attributed the drop in earnings to the ongoing winding down of Citi Holdings, created to hold the firm’s “troubled assets.” Citi Holdings’ revenue dropped 62% from the prior year’s quarter, while the rest of the bank’s revenues were largely unchanged.
Citi’s expenses also declined by 6% from the previous year’s quarter to $12.1 billion.
“Our core businesses performed well in a difficult environment and are generating solid returns,” CEO Vikram Pandit said in a statement.