In this article, Citigroup shares surged on Wednesday following fourth-quarter earnings that surpassed estimates on both the top and bottom lines, showcasing the bank’s overall strength. CEO Jane Fraser stated, “2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses. Our net income was up nearly 40% to $12.7 billion and we exceeded our full-year revenue target, including record years in Services, Wealth and U.S. Personal Banking.”
The company’s shares increased by 6.3%. Citigroup’s net income was $2.86 billion, an improvement from a net loss of $1.84 billion a year ago, with revenue up 12% year over year. The bank anticipates its return on tangible common equity to be between 10% and 11% in 2026, below its previous medium-term goal of 11% to 12%. Fraser emphasized that this level is “a waypoint, not a destination,” and aims to enhance returns further through internal investments.
Citigroup also announced a $20 billion stock buyback, with $1.5 billion expected in the first quarter. The bank reported growth across various business units in the fourth quarter, with investment banking revenue rising by 35% year over year to $925 million. Markets revenue increased by 36% to $4.58 billion, with fixed income markets revenue surpassing analyst projections.
Revenue for the wealth and services units grew by 20% and 15%, respectively, year over year. The bank’s cost of credit for the quarter was $2.59 billion, down from previous periods. Analysts on the conference call focused on Citi’s expenses and turnaround progress. Fraser mentioned that the planned IPO of Banamex may be delayed until 2026.
In 2024, Citigroup’s stock performed well, rising by nearly 37% for the year. As of Wednesday, the stock had increased by over 4% since the beginning of the year.
