Citigroup reports $17 billion in revenue in Q4 and plans to exit Mexico

Citigroup Inc. (NYSE: C) released its FY21 Q4 earnings report on Friday before the market opened. They reported $17.0 billion in revenue, generating a net income of $3.2 billion and EPS of $1.46.

As of 08:14 AM EST, Citi stocks traded at $65.2, losing $2.47 in its price value or 3.8%.

Key Highlights

  • TTS fees up 18% YoY and Securities Services fees up 11% YoY.
  • Strong results in Investment Banking with share gains in Advisory and Equity Underwriting.
  • Solid client engagement and fee growth across ICG.
  • North America Citigold households up 9% and AUMs up 8%; Asia Wealth hubs AUMs up 13%.
  • Solid momentum in North America Branded Cards underlying drivers with new accounts up 43% and card spend volume up 24%.
  • Returned ~$12 billion in capital to common shareholders in 2021.

Analysts Estimate

EPS – $1.61

Revenue – $16.8 billion

Earnings History

On October 14, 2021, Citigroup reported better-than-expected third-quarter results.

On $17.15 billion in revenue, the bank earned $2.15 per share. According to Refinitiv consensus estimates, Wall Street expected earnings per share of $1.65 on revenue of $16.97 billion.

Net income was $4.6 billion, up from $3.1 billion the previous year. This represents a 48 percent increase year on year.

Trading revenue in the fixed income and equity markets exceeded expectations, totaling $3.18 billion and $1.23 billion, respectively. According to StreetAccount estimates, analysts expected $3.07 billion in revenue from fixed-income trading and $909.7 million in revenue from equities trading.

Revenue from equity trading increased by 40% year on year. Investment banking revenue grew at a similar rate.

Analysts Forecast

According to analysts, Citigroup Inc. is expected to grow at a -41.2% annual rate and generate $18.3 billion in revenue.

Citigroup Inc’s projected 12-month price is 78.00, with a high estimate of 120.00 and a low estimate of 64.00. The median estimate represents a 14.89% increase over the previous price of 67.89.

The current consensus among investment analysts is to purchase Citigroup Inc. stock. Since January, when it was unchanged from a buy rating, it has remained stable.

Recent Development

On January 11, Citi announced that it intends to exit Citibanamex’s consumer, small business, and middle-market banking operations as part of its strategic refresh. Citi’s global Institutional Clients Group will continue to operate a locally licensed banking business in Mexico.

Company Profile

Citigroup Inc., a diversified financial services holding company, offers a wide range of financial products and services to individuals, businesses, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The business is divided into two divisions: Global Consumer Banking (GCB) and Institutional Clients Group (ICG).

It had 2,303 branches as of December 31, 2020, primarily in the United States, Mexico, and Asia. Citigroup Inc. was established in 1812 and is based in New York, New York.

Related Posts