Lawsuit Overview - Citibank faces a New York state lawsuit for allegedly failing to protect and reimburse fraud victims [1] - A federal judge rejected Citibank's request to dismiss the lawsuit, ruling that the Electronic Fund Transfer Act (EFTA) applies to unauthorized wire transfers through Citibank's consumer accounts [1][2] Allegations Against Citibank - Citibank allegedly lacked protections against account takeovers and misled customers about their rights during account hacks [3] - The bank is accused of unlawfully denying reimbursements to fraud victims [3] - The lawsuit claims Citibank must reimburse fraud victims under the EFTA due to offering wire transfers online and through mobile apps [4] Citibank's Response - Citibank expressed disappointment with the court's decision, stating its industry-standard practices have long been recognized as compliant with applicable law [3] - The bank emphasized its adherence to wire transfer laws, fraud prevention efforts, and assistance in client loss recovery [4] - Citibank highlighted proactive measures to safeguard accounts, including security protocols, fraud prevention tools, and client education [5] Industry Context - The lawsuit highlights the broader issue of wire fraud, which has surged industry-wide in recent years [5] - Citibank's case underscores the importance of robust fraud prevention and customer protection measures in the banking sector [3][5]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Citigroup Head of Banking and Executive Vice Chair Vis Raghavan said a new regulatory regime has companies in the United States shopping for deals.Much of this search is happening overseas, Raghavan told Bloomberg in an interview Tuesday (Jan. 21). It’s the latest example of post-election enthusiasm on Wall Street for a revival in dealmaking.In addition to an expected rollback of regulations by the new President Donald Trump administration, Raghavan said a strong dollar and a growing gap in the multiples at ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

Citigroup, Inc. (C) shares have gained 8.8% compared with the industry’s growth of 5.8% since the release of its fourth-quarter 2024 results. The company registered top and bottom-line growth in the reported quarter, mainly attributable to a rise in non-interest revenues (NIR), driven by strength in the investment banking (IB) business.Price Performance Image Source: Zacks Investment Research Citigroup’s close peers Bank of America (BAC) and Wells Fargo (WFC) registered strong growth in their quarterly non- ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Citigroup (C) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Citigroup currently has an average ...

Earnings and Share Price Performance - Citigroup reported its fourth-quarter earnings on January 15, with the share price increasing by 6.5% on the same day [1] - The share price rise was somewhat surprising given the revised 2026 ROTCE target of 10% to 11%, down from the prior target of 11% to 12% [1] Analyst's Position and Research Focus - The analyst has a beneficial long position in Citigroup shares through stock ownership, options, or other derivatives [2] - The analyst's independent banking research focuses on financials, deep value, special situations, and financial arbitrage [1] - The research approach is agnostic and apolitical, aiming to identify durable and uncorrelated cash flows that perform well in both inflationary and deflationary settings [1]

Job Cuts and Restructuring - Citigroup is cutting more jobs this week, including managing directors in the wealth and technology units, as well as members of a team that compiles client data and analysis [1] - The job cuts are part of CEO Jane Fraser's expense goals and follow a restructuring plan presented in late 2023 to increase earnings, streamline operations, and address deficiencies in data governance and risk management [2][5] - One of the senior exits includes Shadman Zafar, the bank's Dallas-based co-chief information officer [1] Financial Performance and Market Reaction - Citigroup's stock surged 37% in 2024, outperforming the broader banking index and equity markets, as investors responded positively to Fraser's transformation efforts [4] - The bank beat estimates for fourth-quarter profit, driven by strength in trading and dealmaking [4] Banamex Listing Plans - Citigroup still expects to list its Mexican unit, Banamex, on both Mexican and US stock exchanges this year [3] - However, market conditions and regulatory hurdles might delay the stock floatation to 2026 [3] - The bank completed the separation of banking companies needed for the listing in December [3]

Dividends and Income Investing - Dividends are a key component of long-term returns, often accounting for over one-third of total returns [1] - Income investors focus on generating consistent cash flow from liquid investments, with dividends being a primary source [6] - High-growth firms and tech start-ups rarely offer dividends, while established companies with secure profits are preferred for dividend income [4] Citigroup Overview - Citigroup (C) is a New York-based bank in the Finance sector, with shares up 11.19% year-to-date [2] - The company currently pays a dividend of $0.56 per share, yielding 2.86%, higher than the Financial - Investment Bank industry average of 0.88% and the S&P 500's 1.53% [2] - Citigroup has a Zacks Rank of 2 (Buy), indicating a compelling investment opportunity [4] Earnings and Dividend Growth - Citigroup's earnings are expected to grow 22.35% year-over-year in 2025, with a Zacks Consensus Estimate of $7.28 per share [3] - The company's current annualized dividend of $2.24 is up 2.8% from last year, with a 5-year average annual increase of 1.58% [7] - Future dividend growth will depend on earnings growth and the payout ratio, which is currently 41% [7] Dividend Benefits - Dividends improve stock investing profits, decrease portfolio risk, and offer tax advantages [5] - However, not all companies provide quarterly dividends, making consistent payers like Citigroup attractive to income investors [5]

Earnings Performance - Adjusted net income per share for 2024 was $4.04, missing the Zacks Consensus Estimate of $5.88 and down from $5.94 in the year-ago quarter [1] - Fourth-quarter 2024 adjusted net income per share was $1.34, surpassing the Zacks Consensus Estimate of $1.25 and improving from a loss of $1.16 in the prior-year quarter [11] - Net income (GAAP basis) in the fourth quarter was $2.9 billion, compared to a loss of $1.8 billion in the prior-year quarter [12] - Full-year 2024 net income was $12.7 billion, up 37.4% year over year [12] Revenue Performance - Fourth-quarter revenues, net of interest expenses, increased 12.3% year over year to $19.6 billion, surpassing the Zacks Consensus Estimate of $19.55 billion [2] - Full-year revenues, net of interest expenses, were $81.2 billion, up 3% year over year and exceeding the Zacks Consensus Estimate of $81.05 billion [2] - Net Interest Income (NII) fell marginally year over year to $13.7 billion, while non-interest revenues (NIR) increased 62% to $5.8 billion [13] Segment Performance - Services segment revenues, net of interest expenses, were $5.17 billion in the fourth quarter, up 15% year over year, driven by Treasury and Trade Solutions and Securities Services [3] - Wealth segment revenues rose 20.4% year over year to $2 billion, driven by a 22% increase in non-interest revenues and a 20% jump in net interest income [4] - All Other segment revenues declined 34% year over year to $1.35 billion [4] - Markets segment revenues increased 36% year over year to $4.6 billion, driven by growth in Fixed Income and Equity markets [14] - Banking revenues increased 27% year over year to $1.24 billion, primarily driven by growth in Investment Banking [14] - U.S. Personal Banking revenues were $5.2 billion, up 6% year over year, driven by higher net interest income growth in Interchange fees [14] Balance Sheet and Capital Position - Deposits at the end of the fourth quarter were down 1.8% sequentially to $1.28 trillion, while loans increased marginally to $694.5 billion [5] - Common Equity Tier 1 capital ratio was 13.6% at the end of the fourth quarter, up from 13.4% in the prior-year quarter [16] - Supplementary leverage ratio remained unchanged at 5.8% [16] Credit Quality - Total non-accrual loans fell 16% year over year to $2.7 billion [8] - Provisions for credit losses and benefits and claims were $2.59 billion in the fourth quarter, down 27% year over year [8] - Allowance for credit losses on loans was $18.5 billion, down 2% from the prior-year quarter [8] Capital Deployment - Citigroup returned $2.1 billion to shareholders through common share dividends and share repurchases in the fourth quarter [6] Outlook - Management expects 2024 revenues in the range of $83.5-$84.5 billion, driven by fee growth in the Services segment and a strong Investment Banking business [9] - Net Interest Income (excluding Markets) is projected to be slightly up year over year [9] - Expenses are anticipated to be slightly lower than $53.8 billion [9] Transformation Initiatives - Business transformation initiatives, including consumer business exits and organizational simplification efforts, are expected to benefit the company in the long run [7] - Operating expenses declined 18% year over year to $13.2 billion, primarily due to organizational simplification and stranded cost reductions [13]