In This Article:
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Net Income: Up nearly 40% to $12.7 billion for the full year.
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Revenue: Increased by 5% excluding divestitures, totaling $81.1 billion for the year.
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Fee Revenue: Up 17% for the year.
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Expenses: $53.8 billion, in line with target, excluding FDIC special assessment.
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Efficiency Ratio: Improved by 340 basis points.
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Return on Tangible Common Equity (RoTCE): Grew over 200 basis points, with a full-year RoTCE of 7%.
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Services Revenue: Up 9% to $19.6 billion.
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Markets Revenue: Increased 6% to $19.8 billion.
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Banking Revenue: Up 32% to $6.2 billion.
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Wealth Revenue: Increased 7% to $7.5 billion.
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US Personal Banking Revenue: Up 6% to $20.4 billion.
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CET1 Ratio: Ended 2024 at 13.6%, 150 basis points above regulatory requirement.
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Share Repurchase Program: $20 billion authorized, with $1 billion repurchased in Q4.
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Transformation Investment: $2.9 billion spent on transformation initiatives.
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Technology Investment: $11.8 billion focused on digital innovation and cybersecurity.
Release Date: January 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Citigroup Inc (NYSE:C) reported a strong fourth quarter with net income up nearly 40% to $12.7 billion for the full year.
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The company exceeded its full-year revenue target with a 5% increase in revenues, excluding divestitures.
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Citigroup Inc (NYSE:C) announced a $20 billion share repurchase program, reflecting confidence in its earnings power.
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The company achieved positive operating leverage across its five core businesses, with each generating growth.
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Citigroup Inc (NYSE:C) made significant progress in its transformation efforts, including the simplification of its organizational structure and the closure of three longstanding consent orders.
Negative Points
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Citigroup Inc (NYSE:C) adjusted its 2026 RoTCE target to 10% to 11%, down from previous expectations, due to increased investments in transformation and technology.
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The company faces challenges in data and regulatory reporting, requiring additional investments to meet regulatory expectations.
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Expenses remain elevated, with a focus on transformation and technology investments, impacting short-term financial targets.
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The company's US personal banking segment continues to deliver returns below the cost of capital, posing a hurdle for overall profitability.
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Citigroup Inc (NYSE:C) is still in the process of exiting its Banamex business, with the timing of the IPO dependent on regulatory approvals and market conditions.
Q & A Highlights
Q: Can you elaborate on the reduction in the RoTCE target for 2026 and the path to a 60% or lower efficiency ratio? A: Jane Fraser, CEO, explained that the reduction in the RoTCE target is due to increased investments in transformation, which are temporary. The focus remains on driving business performance and executing transformation. Mark Mason, CFO, added that the path to a lower efficiency ratio involves sustainable revenue momentum, eliminating inefficiencies, and leveraging transformation investments to lower costs over time.