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Citigroup (C)
NYSE:C
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Citigroup
(NYSE:C)
64Neutral
Positive Factors
Investment Banking Performance
Investment banking fees rose solidly year over year.
Operating Leverage
Citigroup reported the third consecutive quarter of positive operating leverage, with expenses below consensus forecast.
Share Buybacks
Share buybacks are accelerating, with buybacks in the first quarter exceeding management's guidance.
Negative Factors
Credit Risk Concerns
Investors perceive credit risk tied to Citigroup's credit card book and concerns about below-average PPNR defensibility.
Loan Growth
Citi's loan growth moderated in both branded and retail services, with retail services growth going negative year over year.
Profitability Challenges
High expenses from ongoing investments continue to weigh on profitability and ROE.
Citigroup (C) vs. S&P 500 (SPY)
Market Cap
$116.02B
Dividend Yield3.24%
Average Volume (3M)21.16M
Price to Earnings (P/E)10.4
Beta (1Y)1.40
Revenue Growth2.97%
EPS Growth88.51%
CountryUS
Employees229,000
SectorFinancial
Sector Strength83
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.96
Shares Outstanding1,882,160,000
10 Day Avg. Volume29,531,106
30 Day Avg. Volume21,155,270
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.90
Price to Cash Flow (P/CF)1.40
P/FCF Ratio0.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$86.96Price Target Upside27.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Citigroup Business Overview & Revenue Model
Company DescriptionCitigroup Inc. is a leading global financial services company based in the United States, providing a broad range of financial products and services to consumers, corporations, governments, and institutions. The company operates through two primary business segments: Global Consumer Banking (GCB) and Institutional Clients Group (ICG). These segments offer services including retail banking, credit cards, corporate and investment banking, securities brokerage, and wealth management.
How the Company Makes MoneyCitigroup makes money through its diversified range of financial services across its key segments. The Global Consumer Banking segment generates revenue from consumer loans, deposits, and credit card services. This includes interest income from loans and fees from credit card transactions. The Institutional Clients Group segment earns revenue through investment banking activities such as underwriting and advisory services, trading revenue from market-making activities, and treasury and trade solutions providing liquidity management. Additionally, Citigroup generates income from asset management and wealth management services. Partnerships with other financial entities and strategic investments further contribute to its revenue streams.
Citigroup Financial Statement Overview
Summary
Citigroup shows moderate financial performance. The income statement indicates operational efficiency but highlights the need for improved profitability. The balance sheet is stable with a solid equity base yet carries the risk of high leverage. Cash flow reflects volatility and challenges in maintaining positive free cash flow, impacting long-term liquidity.Income Statement
Citigroup's income statement reveals a moderate financial performance. The gross profit margin is robust due to a strong revenue base. However, the net profit margin is relatively low, indicating controlled profitability. The revenue growth rate has been inconsistent over the years, with a recent decline. EBIT and EBITDA margins suggest operational efficiency but highlight the need for improved earnings growth.65
Positive
Balance Sheet
The balance sheet of Citigroup is relatively strong, with a solid equity position. The debt-to-equity ratio is high, typical for banks, indicating significant leverage. The return on equity reflects moderate profitability for equity holders, while the equity ratio suggests a stable financial structure. Overall, the balance sheet demonstrates financial strength but carries potential risks from high debt levels.70
Positive
Cash Flow
Citigroup's cash flow statement shows a mixed picture. Operating cash flow is volatile, reflecting fluctuating net income and operational activities. Free cash flow has been negative in recent years, impacting the cash flow to net income ratios. The free cash flow growth rate indicates challenges in maintaining positive cash flow, which could affect long-term liquidity.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 71.36B | 78.49B | 75.31B | 71.89B | 75.49B | Gross Profit |
| 71.36B | 78.49B | 75.31B | 71.89B | 75.49B | EBIT |
| 30.23B | 22.81B | 18.81B | 27.47B | 13.63B | EBITDA |
| 17.74B | 27.37B | 23.07B | 31.43B | 0.00 | Net Income Common Stockholders |
| 12.68B | 9.23B | 14.85B | 21.95B | 11.05B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.78B | 241.91B | 325.05B | 248.61B | 282.24B | Total Assets |
| 2.36T | 2.41T | 2.42T | 2.29T | 2.26T | Total Debt |
| 287.30B | 324.08B | 318.70B | 282.35B | 301.20B | Net Debt |
| 264.52B | 63.14B | -6.35B | 33.74B | 18.96B | Total Liabilities |
| 2.15T | 2.21T | 2.21T | 2.09T | 2.06T | Stockholders Equity |
| 208.60B | 205.45B | 201.19B | 201.97B | 199.76B |
| Cash Flow | Free Cash Flow | |||
| -26.17B | -80.00B | 19.44B | 57.13B | -24.07B | Operating Cash Flow |
| -19.67B | -73.42B | 25.07B | 61.25B | -20.62B | Investing Cash Flow |
| 86.25B | -8.46B | -79.45B | -124.91B | -95.31B | Financing Cash Flow |
| -38.30B | 687.00M | 137.76B | 17.27B | 233.59B |
Citigroup Technical Analysis
Neutral
68.43
Price Trends
70.70
Negative
72.66
Negative
67.45
Positive
Market Momentum
-1.15
Negative
54.41
Neutral
87.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For C, the sentiment is Neutral. The current price of 68.43 is above the 20-day moving average (MA) of 64.64, below the 50-day MA of 70.70, and above the 200-day MA of 67.45, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for C.
Citigroup Risk Analysis
Citigroup disclosed 27 risk factors in its most recent earnings report. Citigroup reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Citigroup Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $677.80B | 12.01 | 17.25% | 1.96% | 12.48% | 23.05% | |
81 Outperform | $171.96B | 7.99 | 13.74% | 5.89% | 6.79% | 8.57% | |
73 Outperform | $273.39B | 11.19 | 9.46% | 2.58% | 7.23% | 16.15% | |
67 Neutral | $204.11B | 11.23 | 11.05% | 2.23% | 3.22% | 16.51% | |
65 Neutral | $136.62B | 11.19 | 9.70% | 1.93% | 13.21% | -12.06% | |
64 Neutral | $116.02B | 10.37 | 6.33% | 3.24% | 2.97% | 88.51% | |
63 Neutral | $12.32B | 9.52 | 7.97% | 79.23% | 12.77% | -4.57% |
* Financial Sector Average
Performance Comparison
C
Citigroup
68.43
8.25
13.71%
BAC
Bank of America
39.69
3.05
8.32%
HSBC
HSBC Holdings
55.99
17.34
44.86%
JPM
JPMorgan Chase
243.55
54.65
28.93%
MUFG
Mitsubishi UFJ
12.27
2.59
26.76%
WFC
Wells Fargo
69.73
11.35
19.44%
Citigroup Earnings Call Summary
Earnings Call Date: Apr 15, 2025 | % Change Since: 8.24% | Next Earnings Date: Jul 15, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter with significant growth in net income and revenues across various segments, particularly in wealth management and markets. However, challenges in non-interest revenue and a decline in retail services highlight areas of concern. Overall, the firm's strategic initiatives and strong capital returns provide a positive outlook despite macroeconomic uncertainties.Highlights
Strong Net Income and Revenue Growth
Reported net income of $4.1 billion and earnings per share of $1.96 with an ROTCE of 9.1%. Total revenues were up 3%, driven by growth in each of the businesses.
Positive Operating Leverage Across All Segments
Citi delivered its third consecutive quarter of positive operating leverage for each of its five lines of business and the fourth consecutive quarter for the firm overall.
Record Performance in Wealth Management
Wealth revenues were up 24%, with growth across Citi Gold, the private bank, and Wealth at Work. The segment delivered record revenue this quarter with improved efficiency and returns.
Strong Performance in Markets
Markets revenues were up 12%, with equities revenues increasing by 23% and fixed income revenues by 8%. This marks the fourth consecutive quarter of positive operating leverage in markets.
Increased Capital Return to Shareholders
Returned $2.8 billion in capital to shareholders, including $1.75 billion of buybacks, which is the highest quarterly amount since 2022.
Lowlights
Challenges in Non-Interest Revenue
Non-interest revenues excluding markets were down 6% as better results in banking and wealth were more than offset by declines in all other segments, USPB, and services.
Retail Services Revenue Decline
Retail services revenues declined by 11%, primarily driven by higher partner payment accruals.
Macroeconomic Uncertainty and Credit Concerns
The firm faced a cost of credit of $2.7 billion, primarily consisting of net credit losses and a firm-wide net ACL build reflecting uncertainty and deterioration in the macroeconomic outlook.
Company Guidance
During the first quarter of 2025, Citi reported a net income of $4.1 billion, translating to earnings per share of $1.96 and a return on tangible common equity (ROTCE) of 9.1%. The bank achieved a 5% year-over-year decline in expenses and delivered positive operating leverage across its five business lines for the third consecutive quarter, and for the firm overall, for the fourth quarter. Revenues increased by 3% to $21.6 billion, driven by growth in each business segment. The services segment recorded its highest first-quarter revenue in a decade, while markets revenue rose 12%, with a notable 23% increase in equities. The banking division experienced a 12% revenue increase, partly due to M&A revenue nearly doubling. Wealth management revenues grew by 24%, driven by an 11% organic growth in client investments. US Personal Banking (USPB) saw a 2% uptick, supported by increased loan balances in branded cards. Citi returned $2.8 billion in capital to shareholders, including $1.75 billion in buybacks, and ended the quarter with a Common Equity Tier 1 (CET1) ratio of 13.4% and a tangible book value per share of $90. The bank remains focused on transformation investments and leveraging artificial intelligence to enhance client experience.Citigroup Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Citigroup Appoints Nicole Giles as Chief Accounting Officer
Positive
Feb 18, 2025
On February 13, 2025, Citigroup announced the appointment of Nicole Giles as the Chief Accounting Officer effective February 21, 2025, and Controller effective immediately. Ms. Giles, with a strong background from J.P. Morgan Chase & Co., will replace Robert Walsh and Patrick Scally in their interim roles at Citi. This strategic appointment is part of Citi’s ongoing efforts to strengthen its financial leadership, potentially impacting its operational efficiency and stakeholder relations.
Executive/Board Changes
Citigroup Appoints Titilope Cole to Board of Directors
Neutral
Feb 3, 2025
On January 31, 2025, Citigroup’s Board of Directors appointed Titilope Cole as a new director and assigned her to several key committees, reflecting her significant experience in financial services and her previous role as Head of Legacy Franchises. This strategic move comes ahead of Barbara Desoer’s planned departure from the Board, with Cole’s expertise expected to contribute significantly to Citi’s governance and strategic initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.