By Tatiana Bautzer and Manya Saini
(Reuters) -Citigroup beat Wall Street expectations for second-quarter profit on Friday, boosted by a jump in investment banking, markets and services revenue, but shares fell 2% amid investor worries about expenses, dividends and market share.
The third largest U.S. lender reported a profit of $1.52 per share in the three months ended June 30, above analysts’ expectations of $1.39, according to LSEG data.
Citi had a 7.2% shareholder return in the second quarter, far from its target of 11% to 12%, said Warren Kornfeld, senior vice president in the financial institutions group at Moody’s Ratings.
“The results again reflect the services sector’s strength. But Citi has challenges in broadening market share and reducing expenses in its other segments.”
The stronger results come two days after U.S. regulators fined Citi $136 million for making “insufficient…
