Citigroup Reports Strong Q4 Earnings Driven by Trading Strength, Announces Share Repurchase Program

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Citigroup has reported impressive earnings for the fourth quarter of 2024, marking a significant recovery from the losses experienced during the same period last year.

The bank posted a net income of $2.9 billion, or $1.34 per share, a notable improvement over the previous year’s loss, reflecting its strong financial performance.

Total revenues for the quarter rose to $19.6 billion, driven by a robust 36% increase in market revenues, particularly in U.S. equities.

Investment banking also saw a solid performance with a 35% year-on-year increase in revenues. The positive momentum in these areas helped Citigroup recover from the challenges faced earlier in the year.

Citigroup’s fourth-quarter results were bolstered by a surge in trading revenues, with particularly strong results in equities and fixed income.

This performance was a key driver behind the bank’s profitability, and its earnings per share exceeded analysts’ expectations, signaling continued strength in its trading business.

In line with its positive performance, Citigroup has announced a $20 billion share repurchase program, reflecting confidence in its financial health and a commitment to returning capital to shareholders.

This move is seen as a strategic way to further enhance shareholder value.

Despite the strong earnings, Citigroup adjusted its 2026 target for return on tangible common equity (ROTCE), lowering the forecast to 10-11% from its previous expectations.

The bank noted that the adjustment comes as part of its strategy to make further investments into its growth and transformation initiatives.

Citigroup’s CEO, Jane Fraser, emphasized the resilience of the bank’s business model in navigating a challenging environment and expressed confidence in continued growth as the global economy stabilizes.

Looking ahead, Citigroup remains optimistic, with the bank forecasting a steady economic recovery in 2025.

The bank expects to see an expansion in global stock market performance, projecting a 10% growth in earnings per share for the year.

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