Banks

Citi's earnings return to pre-crisis levels, but shareholders aren't satisfied

Citi has been unwieldy, impossible to manage and too big to fail for well over 30 years. Post-crisis, however, it has effected an impressive transformation.

a chart showing the discussed data
Data: FactSet; Chart: Axios Visuals

The big picture: Its earnings, unjuiced by the excess leverage of the early 2000s, have largely regained their pre-crisis levels — an impressive enough achievement even before you realize that the bank has shrunk considerably over the past decade.

Car loans mean banks don't need high interest rates to rake in cash

Illustration: Aïda Amer/Axios

Ally Financial was the latest bank to declare a major profit windfall in its second quarter earnings report, as the U.S. banking industry's largest auto lender reported a profit increase of 67%.

Why it matters: Americans are borrowing record sums to buy new vehicles — and used ones — and they continue to pay relatively high interest rates. Banks are seeing big profits as a result.