Citigroup shares fell 5 percent after executives signaled heavier spending ahead

Citigroup's second-quarter results and the reaction to them were reported by Allissa Kline at American Banker. Net income was $5.8bn, up 45 percent from a year earlier, on revenue of $24.8bn, up 14 percent. Earnings came to $3.15 per share, against a $2.73 consensus. Operating expenses rose 5 percent, to $14.2bn. Citi shares fell 5 percent on the day, after executives said investment spending could accelerate in the second half. The bank held full-year return on tangible common equity guidance at 10 to 11 percent. Severance ran to $800m in the first half. Chief Executive Jane Fraser said Citi is using current market conditions to make investments and take actions that drive growth. Executives told analysts no acquisitions are planned.