The banking company records annual net income of nearly 40 percent year over year
Citigroup Inc. [C] announced a significant financial recovery in the fourth quarter of 2024, posting a net income of $2.9 billion.
The banking major reported $1.34 per diluted share earnings, while its revenue soared to $19.6 billion.
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This shows a sharp turnaround after the net loss of $1.8 billion, or earnings of $1.16 per diluted share, in the same quarter of the previous year. The company's full-year net income also rose dramatically to $12.7 billion from $9.2 billion in 2023, marking a nearly 40% increase year-over-year.
Citigroup CEO Jane Fraser said, “2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses.”
Fraser said the bank delivered expenses within its guidance and improved the efficiency ratio while concluding a reorganization of the firm.
Elaborating on the company’s prospects for the coming year Fraser said: “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 percent and 11 percent 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.”
Revenue and Expense Management
In the 8-K filing to the SEC, Citigroup reported its revenue growth was bolstered by strong performances across its various business divisions, including Services, Wealth, and U.S. Personal Banking, all of which recorded significant growth. The revenue increase was partially offset by a decline in 'All Other' categories. Notably, the firm achieved this growth despite adverse conditions such as the currency devaluation in Argentina, which had a lesser impact than in previous periods.
Operating expenses were $53.98 billion, down 4 percent from the previous year, reflecting stringent cost control measures and a reduction in expenses associated with the company's extensive reorganization.
Capital Return and Efficiency Improvements
Highlighting its financial resilience, Citigroup returned approximately $6.7 billion to shareholders in the form of dividends and share repurchases during the year. Additionally, the Board of Directors has approved a new $20 billion stock repurchase program, underpinning the company’s commitment to delivering shareholder value.
The bank's efficiency ratio improved significantly, as a result of both increased revenues and controlled expenses. Citigroup's CEO, Jane Fraser, emphasized that the results demonstrate the effectiveness of the strategic initiatives implemented and the firm's improved operational execution.
Credit Performance and Capital Ratios
The total cost of credit decreased by 27% to $2.59 billion in the fourth quarter, reflecting a more favorable credit environment and effective risk management. Citigroup’s Common Equity Tier 1 Capital ratio stood at a solid 13.6%, ensuring strong capital adequacy.
Outlook and Strategic Direction
Looking forward, Citigroup anticipates its Return on Tangible Common Equity (RoTCE) for 2026 to be between 10 percent and 11 percent, as it plans to make further investments to solidify its business foundations. CEO Fraser remarked on the outlook, stating that these targets represent "waypoints, not destinations," as the company aims to enhance returns significantly beyond these levels.
Citigroup enters 2025 with strong momentum across its operations, poised to continue delivering robust financial performance and enhancing value for its shareholders. The strategic adjustments and investments made over the past year are expected to yield further benefits, reinforcing Citigroup's position as a leading global financial services institution.
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