Citigroup’s Shares Jump as Earnings Exceed Estimates
Citigroup’s shares surged 6.3% on Wednesday after the company reported fourth-quarter earnings that beat estimates on both the top and bottom lines. The bank’s net income increased by nearly 40% to $12.7 billion, exceeding its full-year revenue target and achieving record years in services, wealth, and U.S. personal banking.
CEO Jane Fraser attributed the strong performance to the company’s strategy, which is delivering as intended and driving stronger performance across its businesses. The bank’s revenue grew 12% year over year, with investment banking revenue jumping 35% to $925 million. Markets revenue also surged 36% to $4.58 billion, with both fixed income and equity businesses growing.
Citi’s cost of credit for the quarter was $2.59 billion, down from $3.55 billion a year ago and $2.68 billion in the third quarter. The bank added a net $203 million to its allowance for credit losses, which was also down from prior periods.
The company expects its return on tangible common equity to be between 10% and 11% in 2026 as it continues to make investments and reshape its business. CEO Jane Fraser called this level a “waypoint, not a destination,” and said it should rise as the company continues to make internal investments.
Citi also announced a $20 billion stock buyback, with about $1.5 billion expected to occur during the first quarter. The bank’s stock was up more than 4% this year entering Wednesday, and rose nearly 37% in 2024.
