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Citigroup (NYSE:C) stock rose 1.8% in Friday premarket trading after the bank said it expects 2024 revenue to increase to about $80B-$81B from $778.5B in 2023, driven by gains in treasury and trade solutions, securities services, a rebound in investment banking and wealth, and lower partner payments in retail services. The revenue outlook excludes markets and divestitures.
Net interest income, excluding markets, is expected to decline modestly as global interest rates fall. Citi (C) expects mid-single-digit loan growth, driven by its card business and modest operating deposit growth, it said in its earnings slides.
“Given how far we are down the path of our simplification and divestitures, 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our transformation,” said CEO Jane Fraser.
Q4 adjusted EPS of $0.84 exceeded the average analyst estimate of $0.77 and fell from $1.52 in Q3 and $1.16 in Q4 2022. The bank disclosed on Wednesday a number of charges which resulted in a GAAP loss ot $1.16 per share on its bottom line.
Revenue of $17.4B compared with $20.1B in the prior quarter and $18.0B a year ago. Excluding the pretax impact of Argentina peso devaluation, Q4 2023 revenue would have increased 2% Y/Y.
Q4 net credit losses amounted to $1.99B vs. $1.64B in Q3 and $1.18B in Q4 2022. Net allowance credit build was $397M compared with $125M in the prior quarter and $640M a year ago. Total cost of credit was $3.55B vs. $1.84B in Q3 and $1.85B in Q4 2022.
Total operating expenses of $16.0B vs. $13.5B in the prior quarter and $13.0B in Q4 2022.
Services total revenue of $4.50B fell 3% Q/Q and rose 6% Y/Y. Treasury and Trade Solutions revenue of $3.42B slipped 2% from Q3 and increased 6% from a year ago. Securities Services revenue of $1.08B dropped 4% Q/Q and rose 3% Y/Y.
Markets revenue of $3.41B slid 29% Q/Q and 19% Y/Y. Fixed income markets revenue of $2.59B sank 33% Q/Q and 25% Y/Y, and equity markets revenue of $819M dropped 13% Q/Q and increased 9% Y/Y.
Banking revenue of $1.08B dropped 22% Q/Q and was flat Y/Y. Investing banking revenue of $669M fell 3% Q/Q and rose 27% Y/Y, while corporate lending revenue of $411M plunged 41% Q/Q and 26% Y/Y.
U.S. Personal Banking revenue of $4.94B was flat Q/Q and rose 12% Y/Y. Branded cards revenue of $2.62B increased 3% Q/Q and 10% Y/Y. Retail services revenue of $1.64B slipped 5% Q/Q and rose 15% Y/Y. Retail Banking revenue of $684M increased 5% from Q3 and 15% from a year ago.
Wealth revenue of $1.67B dropped 10% Q/Q and 3% Y/Y, with Citigold revenue of $918M declining 9% Q/Q and 1% Y/Y. Meanwhile, private bank revenue of $542M fell 12% from Q3 and 10% from a year ago.
Loans of $689B at Dec. 31, 2023, rose from $666B at Sept. 30; deposits of $1.31T at the end of the year increased from $1.27T at the end of Q3.
Common equity tier 1 capital ratio was 13.3% vs. 13.5% in Q3 and 13.0% in Q4 2022.
Conference call at 12:00 PM ET.
Earlier, Citigroup (C) non-GAAP EPS of $0.84 beats by $0.11, revenue of $17.4B misses by $1.36B
Also, Citigroup in charts: Segment revenue declines Q/Q alongside a 22% surge in net credit losses
