Citigroup (NYSE:C) had a tumultuous fourth quarter as it saw a $1.8 billion loss on revenues of $17.4 billion. The bank’s loss was primarily due to a $1.7 billion expense related to the special assessment from the Federal Deposit Insurance Corporation (FDIC) to replenish losses in a fund aiding uninsured depositors of seized regional banks.
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Moreover, the bank also felt the impact of the $1.3 billion reserve it put aside related to transfer risks in Russia and Argentina. Excluding the impact of these charges, Citi would have an adjusted earnings of $0.84 in the fourth quarter, above consensus estimates of $0.11 per share.
The bank’s revenues of $17.4 billion declined by 3% year-over-year and fell short of Street estimates of $18.71 billion. Even Citigroup’s CEO Jane Fraser termed the Q4 results as “very disappointing” but added that the bank has made “substantial progress” after its restructuring last year.
However, Citi’s other businesses, including institutional services, U.S. personal banking, and investment banking, performed well in the fourth quarter.
Is Citibank a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about Citi stock with a Moderate Buy consensus rating based on seven Buys, nine Holds, and one Sell. Over the past year, Citi stock has gone up by 10%, and the average Citigroup price target of $58.24 implies an upside potential of 10.88% at current levels.
