Citigroup Soars 2.84% on Bond Issuance, Bullish Outlook

On April 23, 2025, Citigroup's stock rose by 2.84% in pre-market trading, indicating a strong start to the day's trading session.

Citigroup recently issued two senior unsecured bonds denominated in euros, which are expected to have a positive impact on the company's financial health. The bonds, with maturities of 4NC3 and 11NC10, have interest rates of 3mE+110bps and MS+165bps respectively. This move is part of Citigroup's strategy to diversify its funding sources and strengthen its capital base.

Citigroup's recent research report on Bank of China (Hong Kong) Limited (BOC Hong Kong) also reflects the bank's positive outlook on the market. The report predicts that BOC Hong Kong's operating profit for the first quarter of 2025 will be HKD 13 billion, a 23% increase quarter-on-quarter and a 1% increase year-on-year. This optimistic forecast is driven by expectations of a resilient non-interest income stream, despite potential pressure on net interest income due to lower market interest rates.

Citigroup's bullish stance on BOC Hong Kong is further supported by its target price increase from HKD 29.1 to HKD 32.2, along with a "buy" rating. This positive outlook on BOC Hong Kong, a key player in the Hong Kong banking sector, may also reflect Citigroup's confidence in the broader market conditions and its own strategic positioning.