Citigroup's 2024 Success: A Turning Point for the Bank

As the clock struck midnight on December 31, 2024, Citigroup (C) closed the books on a year that marked a significant turnaround for the banking giant. The company's fourth-quarter earnings call, held on January 15, 2025, revealed a robust performance that exceeded expectations and set the stage for continued growth in 2025. Let's dive into the key takeaways from the call and explore what this means for Citigroup's future.



Citigroup's 2024 performance was nothing short of impressive. The bank reported a nearly 40% increase in net income, with full-year net income reaching $12.7 billion. This marked a significant improvement from the $9.1 billion in net income reported in 2023. Diluted earnings per share (EPS) climbed to $1.34 in the fourth quarter, up from a loss of $1.16 in the same period in 2023. Revenue also saw a strong increase, with Citigroup's revenue, net of interest expense, rising 12% year-over-year to $19.58 billion in the fourth quarter of 2024.



Citigroup's turnaround can be attributed to several factors, including strategic clarity, good momentum across all businesses, and a strong macro backdrop. The bank's five core businesses – services, markets, equities, banking, and wealth – each generated positive operating leverage for the full year. Services, markets, and equities all saw significant growth, with services up 9%, markets up 6%, and equities up 26%. The wealth business also showed strong performance, with revenue up 7% and net new investment asset flows growing 40%.



One of the most notable announcements from the earnings call was Citigroup's decision to adjust its 2026 return on tangible common equity (RoTCE) target to 10% to 11%. This adjustment reflects the bank's increased investments in transformation and technology, which are expected to be temporary. CEO Jane Fraser and CFO Mark Mason both emphasized that the focus remains on driving business performance and executing transformation initiatives.



Citigroup's 2024 performance serves as a strong foundation for continued growth in 2025. The bank's strategic clarity, good momentum across all businesses, and a strong macro backdrop position it well for the coming year. As Citigroup continues to execute its transformation initiatives and invest in technology, investors can expect to see further progress in the bank's turnaround story.

In conclusion, Citigroup's 2024 performance marked a significant turning point for the bank. With a nearly 40% increase in net income, strong revenue growth, and positive operating leverage across all core businesses, Citigroup has demonstrated its ability to execute on its strategic vision. As the bank continues to invest in transformation and technology, investors can expect to see further progress in Citigroup's turnaround story in 2025 and beyond.