Citi’s strategic execution drives strong 2024 performance

ByInvestment Club

Overview

Citigroup delivered strong financial results for Q4 2024, showcasing significant improvements across key metrics and reaffirming its strategic execution. The firm achieved double-digit revenue growth and higher profitability compared to Q4 2023, supported by a rebound in core business segments.

Citigroup reported strong Q4 2024 results, with revenues of $19.6bn, net income of $2.9bn, and an EPS of $1.34, culminating in full-year revenues of $81.1bn and a net income of $12.7bn, supported by a robust CET1 capital ratio of 13.6% and a solid RoTCE of 7.0% for 2024.

Q4 2024 vs. Q4 2023:

Revenue and profitability

  • Revenues increased to $19.6bn (+12% YoY), driven by strong performance in Services, Wealth Management, and U.S. Personal Banking (USPB).
  • Net income surged to $2.9bn, reversing a net loss of $(1.8) billion in Q4 2023.
  • Earnings per share (EPS) improved significantly to $1.34, compared to a loss of $(1.16) per share in the prior-year period.
  • The Return on Tangible Common Equity (RoTCE) rose to 6.1%, compared to (5.1%) in Q4 2023.

Segment performance

  • In Services, revenues grew to $5.2bn (+15% vs. 2023), supported by Treasury and Trade Solutions (TTS) and Securities Services.
  • In Markets, revenues increased to $4.6bn (+36% YoY), driven by Fixed Income and Equity Markets.
  • In Wealth Management, revenues rose to $2.0bn (+20% vs. 2023), led by Citigold and higher investment fee income.
  • In USPB, revenues increased to $5.2bn (+6% YoY), driven by growth in Branded Cards and Retail Services.

Operational efficiency

  • Operating expenses decreased 18% YoY, reflecting organizational simplification and the absence of prior-year restructuring charges.
  • Cost of credit fell to $2.6bn (-27% vs. Q4 2023), driven by lower provisions for credit losses.

Full-Year 2024 highlights:

Annual performance

  • Full-year revenues reached $81.1bn (+3% YoY), exceeding the firm’s revenue target.
  • Net income grew to $12.7bn (+37% vs. 2023), with an EPS of $5.94.
  • RoTCE improved to 7.0% (+210bps vs. 4.9% in 2023).

Capital and Returns

  • The Common Equity Tier 1 (CET1) ratio stood at 13.6%, reflecting strong capital positioning.
  • Returned ~$7bn to shareholders in dividends and buybacks, with the Board authorizing a new $20bn repurchase program for 2025.
  • Book value per share increased to $101.62 (+3% YoY), while tangible book value per share rose to $89.34 (+4% YoY).

Citi CEO Jane Fraser looks extremely optimistically towards the future, after one of the best years in terms of results, stating that: “We entered 2025 with momentum across our businesses and we continue to strengthen our ability to serve our clients. While we now expect our 2026 RoTCE to be between 10% and 11% in order to make additional investments in our businesses and Transformation, this level is a waypoint, not a destination. We intend to improve returns well above that level and deliver Citi’s full potential for our shareholders”.

Author: Ionuț-Adrian Lazar

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