Citigroup Beats Q4 Earnings Estimates, Shares Surge 3%

NEW YORK — Citigroup Inc. reported stronger-than-expected fourth-quarter earnings Wednesday, beating Wall Street estimates on both revenue and profit, driven by growth across its investment banking and markets divisions. The bank’s shares rose more than 3% in premarket trading following the announcement.

The financial giant posted a net income of $2.86 billion, or $1.34 per share, a significant improvement from a net loss of $1.84 billion, or $1.16 per share, in the same period last year. Revenue for the quarter climbed 12% year over year, with investment banking revenue surging 35% and markets revenue jumping 36%.

Citigroup’s fixed income markets revenue reached $3.48 billion, surpassing analyst expectations of $2.95 billion, according to StreetAccount. The wealth and services units also saw strong growth, with revenue increases of 20% and 15%, respectively.

“2024 was a critical year, and our results show our strategy is delivering as intended,” CEO Jane Fraser said in a press release. “Our net income was up nearly 40% to $12.7 billion, and we exceeded our full-year revenue target, including record years in Services, Wealth, and U.S. Personal Banking.”

The bank’s cost of credit for the quarter fell to $2.59 billion, down from $3.55 billion a year ago. Citigroup also added $203 million to its allowance for credit losses, a decrease from previous periods.

Investors are closely watching Fraser’s ongoing efforts to streamline the bank, which included selling off some international units. Since taking over in March 2021, Fraser has focused on reducing costs and improving efficiency. Citigroup’s stock has risen nearly 37% in 2024, outperforming the S&P 500, which declined 0.66% over the same period.

Analysts and investors will be looking for further updates on the bank’s turnaround strategy during the earnings call later Wednesday.