Citi(US:C) ZACKSยท2025-01-16 09:51Earnings 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]