US banking giants Citi and JP Morgan unveiled revenue increase in the second quarter, boosted by strong growth in wealth management and consumer banking, lower tax bill and a brighter US economy.
Citi’s group net income increased by 16% to $4.5 billion, and revenue increased to $18.5 billion, up 2% from 2017.
The bank said this was primarily driven by better performance in its Institutional Clients Group (ICG) and Global Consumer Banking (GCB) unit.
ICG, which includes Citi’s private banking business, saw revenue increase 3% to $9.7 billion and net income jump 17% to $3.2 billion.
Global private bank revenue increased 7% to $848 million, driven by growth in clients, loans and investments, as well as improved deposit spreads. GCB revenue increased 2% to $8.3 billion.
Citi CEO Michael Corbat said the group is on track to achieve the financial targets introduced last year.
‘Our focus on expenses has given us the ability to self-fund many of our investments and resulted in an improvement in our efficiency ratio for both the second quarter and through the first half of this year,’ he said.
Better than expected
Meanwhile, rival JP Morgan exceeded analysts’ expectations by recording a significant jump in revenue and net income in the second quarter.
The bank said group revenue hit $28.4 billion, up 6%, and net income reached $8.3 billion, up 18% from 2017.
Net revenue from its Asset and Wealth Management (AWM) unit increased 4% to $3.6 billion; Consumer and Business Banking net revenue was $6.1 billion, up 17%; and Investment Banking revenue was $1.9 billion, up 13%.
Net income from AWM, JP Morgan said, increased 21% to $755 million on the back of higher management fees on growth in long-term products.
AWM assets under management were $2.0 trillion, up 8%, driven by net inflows into long-term and liquidity products, as well as higher market levels.
Jamie Dimon, chairman and CEO of JP Morgan said he sees good global economic growth, particularly in the US where consumer and business sentiment is high.
‘This quarter alone we announced new card products, the national rollout of our all-mobile bank, Finn, new branches in the Washington D.C. area, and plans for a more significant investment in China,’ he said.
‘We are confident that we will continue to drive long-term value for our clients, communities and shareholders.’