Citigroup reported an increase in its net income for the fourth quarter of 2024 (Q4 2024) to $2.9bn or $1.34 per diluted share, compared to a net loss of $1.8bn or $1.16 per diluted share, for the same quarter of the previous year.
In the previous quarter, that is Q3 2024, the American investment bank and financial services company posted a net income of $3.24bn. Compared to this, the Q4 2024 net income reflects a quarter-over-quarter (QoQ) decrease of 12%.
Citigroup’s year-over-year (YoY) net income growth was mainly attributed to higher revenues, reduced expenses, and a lower cost of credit.
The bank’s revenues in Q4 2024 increased by 12% to $19.58bn, compared to $17.44bn in the prior-year period.
According to Citigroup, the increase in its revenues was driven by growth across its businesses and a reduced impact from Argentina’s currency devaluation, partially offset by a decline in the ‘All Other’ segment.
For the full year 2024, Citigroup posted net income of $12.7bn, representing a 37% increase from the $9.2bn recorded in 2023. Its total revenue increased 3% in 2024 to $81.14bn from $78.46bn in 2023.
Citigroup’s services unit reported revenues of $5.2bn in Q4 2024, which was 15% more than the $4.5bn reported in the same quarter in the previous year.
The bank’s market business saw a 36% growth in revenues in Q4 2024 at $4.57bn, compared to $3.36bn reported in Q4 2023.
Citigroup’s banking revenues increased 27% to $1.2bn in the reported quarter, driven by growth in investment banking.
The group’s wealth and US personal banking (USPB) segments posted $2bn and $5.2bn in revenues for Q4 2024, respectively.
Citigroup’s operating expenses in the reported period were down by 18% compared to Q4 2023, standing at $13.2bn.
The decrease was attributed to the US Federal Deposit Insurance Corporation (FDIC) special assessment and the restructuring charge in the prior-year period.
In addition, the decline was driven by the absence of the restructuring charge and savings associated with Citi’s organisational simplification.
The investment bank’s end-of-period loans were $694bn at the end of the fourth quarter, which is 1% more than the prior-year period.
On the other hand, the bank’s end-of-period deposits were $1.3 trillion as of the end of Q4 2024, which is a decrease of 2% compared to Q4 2023.
Citigroup CEO Jane 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% and 11% in order to make additional investments in our businesses and Transformation, this level is a waypoint, not a destination.”
