Companies are beginning to release their second quarter earnings reports, and experts are pointing to Citigroup to outperform in the banking industry.
“Citi almost looks a bit like a ladder,” Sarah Potter told CNBC’s Trading Nation on July 9, predicting its stock to continue to climb. Citi is scheduled to release its earnings report on Monday (July 15) morning.
The prediction is consistent with the company’s history of beating quarterly expectations. Its Q1 earnings for 2019, while reporting lower revenue due to the decline in equities trading, showed higher earnings thanks to company buyback of shares and cost-cutting initiatives.
This quarter, Citi has been seeking growth through innovation and collaboration, as reported by PYMNTS in a podcast interview with Manish Kohli, global head of payments and receivables at Citi. The financial institution has been pursuing collaborations with FinTechs that provide unique payments solutions that can reach a global scale, according to Kohli.
“If you bring the powers of what FinTechs can bring and the powers of what large global banks like us can bring, I believe and I have believed that we have the power to make magic,” Kohli told Karen Webster.
And global it’s been. Last month, Citi partnered with Grab, the ride-hailing startup based in Singapore, to issue co-branded credit cards, an effort aimed at increasing Citi’s customer base in Singapore.
In a similar manner, Citi is expanding its consumer base in India. In May, Citi partnered with India-based Paytm to release the Paytm First Card. The credit card gives consumers 1 percent back on all transactions and is meant to help the company stand out against the competition.
Citi has also rolled out projects to attract a more general consumer clientele around the world, such as offering new credit card-like perks for consumers who use their other banking products. It’s an effort to increase digital deposits, and seems effective; deposits grew greatly in Q1, although some analysts say these perks are a short-term fix. Their Q2 earnings report could give us an indication of the project’s sustainability.
Citigroup will publish its earnings report at 8 a.m. on Monday, followed by a 10 a.m. live webcast and teleconference.