Jane Fraser speaks at the Milken Institute Global Conference in Beverly Hills, California, USA, Monday, April 29, 2019.
Kyle Grillo | Bloomberg via Getty Images
Citigroup The bank reported fourth-quarter earnings Wednesday morning before Wall Street opened, beating both revenue and profit estimates and signaling overall strength.
The bank’s shares rose more than 3% in premarket trading.
Here’s how the company performed relative to LSE analyst consensus estimates:
- Earnings per share: $1.34, $1.22 expected
- Revenue: $19.58 billion, $19.49 billion expected
Citigroup’s net profit for the quarter was US$2.86 billion, an improvement from the net loss of US$1.84 billion in the same period last year. Year-over-year comparisons of fourth-quarter revenue metrics may be complicated by: Citi Booking Fees In the last period of 2023.
The bank reported growth across a number of different business units in the fourth quarter. Investment banking business has become a bright spot in particular, with revenue increasing by 35% year-on-year. Citi said continued momentum in investment-grade corporate bond issuance is helping to drive business in this area. As a result, total bank income increased by 12%, rising to 27% when the impact of loan hedging is taken into account.
Market revenue increased 36% annually, with both fixed income and equity businesses growing. Fixed-income market revenue was $3.48 billion, according to StreetAccount, well above analysts’ forecasts of $2.95 billion.
Revenue from the wealth and services divisions increased by 20% and 15% annually.
“2024 is a critical year, and our results demonstrate that our strategy is delivering as expected and driving stronger performance across our business. Our net profit increased nearly 40% to $12.7 billion, outperforming the overall Annual revenue targets, including record highs in Services, Wealth and U.S. Personal Banking,” CEO Jane Fraser said in the release.
Citigroup’s credit costs for the quarter were $2.59 billion. That was down from $3.55 billion a year ago and $2.68 billion in the third quarter. The bank’s net credit loss provisions increased by $203 million, also lower than the previous period.
Investors will also be watching for updates on Fraser’s turnaround efforts during an analyst call later Wednesday. Fraser took over the bank in March 2021 and focused on downsizing the company, including selling off some international units.
Citi’s stock price is set to perform strongly in 2024, rising nearly 37% from the same period last year. As of Wednesday, the stock was up more than 4% year to date.
