On Friday, Citigroup reported a second-quarter profit and revenue that exceeded expectations. While Citi’s revenue beat expectations, it fell 1% from a year ago due to declines in its markets and investment banking businesses. In Citi’s view, the uncertain macroeconomic environment and low volatility affected client activity and market performance. “Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said.

Citigroup’s net income fell 36% to $2.9 billion, or $1.33 per share, from $4.5 billion, or $2.19 per share, last year, pressured by higher expenses, high cost of credit, and lower revenue. “Markets revenues were down from a strong second quarter last year, as clients stood on the sidelines starting in April while the U.S. debt limit played out,” Fraser said. “In Banking, the long-awaited rebound in Investment Banking has yet to materialize, making for a disappointing quarter.” Positively, personal banking and wealth management revenue increased by 6% to $6.4 billion in the quarter. Citi returned $2 billion to shareholders through common dividends and share buybacks in the second quarter. Citigroup shares dipped 4% on Friday. The stock is up more than 1% year to date, outperforming the SPDR S&P Bank ETF (KBE), down about 12%.