Citi Sees Growth Ahead From ‘High-End' Consumers

Core Insights - Citigroup's fourth-quarter earnings reflect a positive trend in the banking sector, driven by consumer spending, resilient macroeconomic conditions, and growth in digital payments and banking [1] Financial Performance - Branded credit card spending volumes increased by 5% to $135 billion, with average loans in the segment rising 6% year on year to $113 billion [2] - The 90-day delinquency rate for credit cards was 1.18%, up 0.11% from the previous year, while the net credit loss rate increased to 3.6%, up 0.4% from the fourth quarter of last year [2] - Active mobile users grew by 8% to 20 million, and installment loans reached $7 billion, a 12% increase from the year-ago period [2] Strategic Initiatives - The CEO highlighted strong momentum across all business segments, with growth driven by both high-end consumers and a robust corporate sector [3] - The company is on track with its restructuring efforts, having simplified its operations and exited consumer businesses in nine countries, with plans to complete exits in the remaining two [4] - Citi Payments Express, an online bill payment service, has been launched in 18 countries, and 4 million retail banking customers have been transitioned to the new banking platform in the U.S. [4] Technological Advancements - The company has accelerated its use of AI, equipping 30,000 developers with tools to enhance efficiency and launching two AI platforms for its workforce [5] - Investments in digital and data capabilities are helping the company gain market share in security services [5] Retail Banking Focus - The company is emphasizing primary checking growth through simplified banking, fostering a relationship-based approach rather than a transactional one, which is also benefiting its wealth management business [6]