Citi Group Shares jumped Wednesday after fourth-quarter earnings beat estimates on both the high and low ends, reflecting the bank’s overall strength.
“2024 was a critical year and our results show that our strategy is working as planned and driving stronger performance across our businesses. Our net income increased nearly 40% to $12.7 billion and we exceeded our full-year revenue target, including record years in services. , wealth and personal banking services in the United States,” CEO Jane Fraser said in a press release.
The company’s shares rose 5%.
Here are the company’s results compared to LSEG analyst consensus estimates:
- Winnings: $1.34 per share versus $1.22 expected
- Income: $19.58 billion versus $19.49 billion expected
Citi reported net income of $2.86 billion, an improvement from a net loss of $1.84 billion a year ago, when its results were affected by a number of factors. fees booked by Citi in the last period of 2023.
The bank said it expects its return on tangible equity to be between 10% and 11% in 2026, as it continues to make investments and reshape its business. This range is below the bank’s stated medium-term target of 11-12%.
“This level is a crossing point, not a destination. We intend to improve returns well above this level and deliver the full potential of Citi to our shareholders,” Fraser said.
Citi also announced a $20 billion stock buyback.
The bank saw growth across several different business units during the fourth quarter. Investment banking in particular was a bright spot, with revenue jumping 35% year over year to $925 million. Citi said continued momentum in the issuance of investment-grade corporate debt has helped drive this line of business. As a result, total banking revenues increased by 12%, which rose to 27% when including the impact of loan hedges.
Markets revenue jumped 36% year-over-year to $4.58 billion, driven by growth in fixed income and equities businesses. Bond markets revenue of $3.48 billion was well above the $2.95 billion forecast by analysts, according to StreetAccount.
Revenues from the wealth management and services units increased 20% and 15% year-over-year, respectively.
Citi’s cost of credit for the quarter was $2.59 billion. That’s down from $3.55 billion a year ago and $2.68 billion in the third quarter. The bank added a net $203 million to its provision for credit losses, which is also down from prior periods.
On the analyst call later Wednesday, investors will be looking for updates on progress in Fraser’s turnaround efforts. Fraser took over the bank in March 2021 and has focused on downsizing the business, including selling off some international units.
Citi stock has performed well in 2024, up nearly 37% for the year. The stock is up more than 4% so far this year as of Wednesday.
