Citigroup Inc posted higher-than-expected net income in the second quarter, helped by falling credit losses.

Below are analysts' and investors' initial thoughts on the results:

BRAD KELLY, PORTFOLIO MANAGER AT MAGNUM OPUS FINANCIAL WHICH WAS SHORT CITI SHARES, WINSTON-SALEM, NORTH CAROLINA:

It is, to us, a real upside surprise. That's the first thing that jumped out to me - it's an actual beat that I don't think many people are expecting...I'm probably going to have to take a look at how we feel about Citigroup after the conference call because I was really not expecting them to be in the position of strength that they are.

Credit quality is improving and, my guess is, we'll hear that a lot of the strength came from businesses outside of the U.S.

MATT MCCORMICK, PORTFOLIO MANAGER AT BAHL & GAYNOR INVESTMENT COUNSEL, CINCINNATI:

Initially, people will focus on the per share beat, but I think they still have a lot of work to do. The bank still had overall revenue decline, trading declined and they are still taking a lot of quarterly profit from loan loss reserves. Its a good quarter, they're fixing a lot of their problems, but they're not out of the woods yet.

PETER CARDILLO, CHIEF MARKET ECONOMIST AT AVALON PARTNERS, NEW YORK:

The market has been focusing on the debt problems in broad but we have been getting good earnings results from big names like Google, JPMorgan and this morning, Citigroup. Some of the fears are beginning to abate, and if we get some resolution on the debt ceiling, the market is going to focus more on the earnings season which I think will be a good one.

(Reporting by Joe Rauch and Angela Moon; Compiled by Dan Wilchins)

Jpmorgan chase Citigroup