Investment banking company Citigroup (NYSE:C) disclosed that its fourth-quarter results were impacted by several one-time charges and a reserve build that was created to cover risks outside the U.S. The company is set to release its results on January 12, before the market opens.
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Details on Charges and Reserve Build
During the quarter, Citi increased its loan loss reserves by $1.3 billion to reflect higher transfer risk related to the company’s credit exposures outside of the U.S., particularly Argentina and Russia. Furthermore, the devaluation of the Argentine peso led to a $880 million decline in revenue within Citi’s services, markets, and banking division.
Moreover, the company noted that its operating expenses included a $1.7 billion charge related to a special assessment levied by the Federal Deposit Insurance Corporation. This assessment, imposed on banks nationwide, stems from the failures of Silicon Valley Bank and Signature Bank in 2023.
Finally, the quarterly results would also reflect a $780 million restructuring charge, driven by severance, non-cash asset impairments, and other related charges.
What is the Forecast for C Stock?
Of the 17 analysts covering Citigroup, seven have a Buy rating, nine suggest a Hold, and one assigned a Sell in the past three months. Overall, the stock comes in as a Moderate Buy. The average C stock price target is $58.06, implying upside potential of 9.5%. Shares are up 16.8% over the past six months.
