Citigroup's shares are up 30% since CEO Michael Corbat took over in October 2012.
NEW YORK (CNNMoney)
For most banks, beating analysts' estimates is nice but Citigroup is not most banks. It struggled under former CEO Vikram Pandit to gain any traction after a near-death experience during the financial crisis.
Last quarter, Citi's new CEO, Michael Corbat, failed to meet analyst expectations during his first reporting period as CEO. Now it seems that he's starting to make progress.
Citigroup (C, Fortune 500) reported a 30% jump in first-quarter net income to $3.8 billion, or $1.23 a share, and a 6% increase in revenue, to $20.5 billion, helped by strength in investment banking.
Related: JPMorgan Chase fails to impress Wall Street
It looks like Wall Street believes in Corbat so far.
Citigroup's shares rose more than 2% Monday, after rising more than 30% since Corbat took over in October 2012. Under Pandit's five-year reign, Citigroup's shares lost roughly 90% of their value.
"Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging," Corbat said in a statement.
Citi's investment banking revenue jumped, despite a slip in trading revenue.
The bank increased its retail banking lending as well as deposits, but lower margins on loans cut into the bank's profits. Citi also saw negligible profits in its consumer banking business.
On a call with reporters Monday, Citi's chief financial officer, John Gerspach, said he remains concerned about the economic recovery. "There's not a real confident consumer driving the economy," he said.
Related: Wells Fargo beats expectations even as home lending slows
Corbat announced an ambitious cost-cutting plan in December, which included 11,000 layoffs. At the time, Citigroup said the changes would lower expenses by $1.1 billion per year by 2014.
While expenses rose 1% in the latest quarter, they were down 10% from the prior three-month period. Gerspach said the rise in expenses this quarter was largely due to setting aside more for "incentive compensation," adding that the bank's cost-cutting efforts were on track.
Citigroup is the third bank to report earnings, following JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500). Both banks failed to impress Wall Street with their results last week.
Goldman Sachs (GS, Fortune 500), Morgan Stanley (MS, Fortune 500) and Bank of America (BAC, Fortune 500) will release results later this week.
First Published: April 15, 2013: 8:30 AM ET
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