Citi's 7% Surge: A Profit Turnaround and Stock Price Boost

Citi, the multinational financial services holding company, has reported a significant turnaround in its fourth-quarter and full-year 2024 results, leading to a 7% increase in its stock price. The company's net income for the fourth quarter was $2.86 billion, up from a loss of $1.84 billion a year ago, while diluted earnings per share (EPS) climbed to $1.34 from a loss of $1.16. This positive earnings surprise beat consensus estimates compiled by Visible Alpha, driving shares higher in pre-market trading on Wednesday.

Citi's revenue, net of interest expense, rose 12% year-over-year to $19.58 billion, topping estimates. The bank's cost of credit was $2.59 billion, down 27% from a year earlier, which the bank said helped boost net income. "2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses," CEO Jane Fraser said in a release.



Citi also announced that its board of directors approved a $20 billion stock buyback program that will begin this quarter. Stock buybacks can increase the value of remaining shares by reducing the number of outstanding shares, which can lead to an increase in the stock price. Shares of Citi gained close to 4% in pre-market trading Wednesday following the results.

Citi's performance can be attributed to several factors, including improved revenue, reduced cost of credit, and the positive impact of the stock buyback program. The company's strategic focus on its five core interconnected businesses and its commitment to simplifying and transforming the firm have also contributed to its turnaround. As Citi continues to execute its strategy, investors can expect the company to maintain its momentum and deliver strong performance in the coming quarters.



In conclusion, Citi's 7% surge in stock price and profit turnaround can be attributed to its improved revenue, reduced cost of credit, and the positive impact of its stock buyback program. The company's strategic focus on its core businesses and commitment to transformation have also contributed to its strong performance. As Citi continues to execute its strategy, investors can expect the company to maintain its momentum and deliver strong performance in the coming quarters.