TradingKey – In one of its best quarters in recent years, Citigroup Inc (NYSE: C) posted 14% year-on-year second-quarter revenue of $24.8 billion and a 45% surge in net income to $5.8 billion, or $3.15 in diluted EPS, a number well above analyst estimates of $2.74. However, Citigroup shares dropped more than 5% from where they were before the bank released earnings and then rallied back to around $135 on July 16 after the company said it plans to spend more money on investments in the second half of 2024 while keeping its profitability outlook unchanged for the rest of the year.

The quarter suggests Citigroup CEO Jane Fraser’s turnaround playbook is working, but now the bank’s management needs to prove that its decision to ramp up…