- Citigroup’s Q4 Markets Revenue exceeded expectations at $4.58 billion, surpassing the $4 billion estimate.
- FICC sales and trading revenue was $3.48 billion, beating the $2.94 billion estimate.
- Equities sales and trading revenue slightly surpassed expectations at $1.10 billion compared to the $1.06 billion estimate.
- Banking revenue fell short of projections at $1.24 billion below the $1.51 billion estimate.
- Investment banking revenue was above expectations, reaching $925 million against the $896.3 million estimate.
- Total revenue amounted to $19.58 billion for the quarter.
- Earnings per share (EPS) stood at $1.34.
- Total cost of credit was $2.59 billion, slightly higher than the $2.58 billion estimate.
- The common equity Tier 1 ratio was reported at 13.6%, slightly below the 13.7% estimate.
- Return on average equity was 5.4%, exceeding the 4.98% estimate.
- Return on average tangible common equity came in at 6.1%, above the 5.5% estimate.
- Net charge-offs were $2.24 billion, lower than the $2.33 billion forecast.
- Operating expenses totaled $13.19 billion for the period.
- Total loans stood at $694.5 billion, slightly below the $698.49 billion estimate.
- Total deposits reached $1.28 trillion.
- The efficiency ratio was marked at 67.3%.
- Net interest income was above projections at $13.73 billion, compared to the $13.45 billion estimate.
- Services revenue was $5.18 billion, exceeding the $5.02 billion estimate.
- Wealth revenue came in at $2.00 billion, slightly above the $1.96 billion estimate.
- US Personal Banking revenue narrowly surpassed estimates at $5.23 billion versus $5.18 billion projected.
- Market sentiment is favorable with 17 buy recommendations, 6 holds, and 0 sells reported.
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Citigroup Inc on Smartkarma
Analyst coverage of Citigroup Inc on Smartkarma by Value Investors Club reveals a bullish sentiment towards the company. The report highlights investors’ dissatisfaction with Citigroup’s modest profitability compared to its peers, resulting in a discounted valuation of 0.65x TBV. However, there is optimism regarding the potential for improvement, driven by the company’s surplus capital and the possibility of achieving a 10% Return on Tangible Equity (ROTE) within the next two years. Projections indicate that if Citigroup meets its targets, there could be a substantial upturn in share value, with Tangible Book Value (TBV) per share reaching $100 and Earnings Per Share (EPS) of $10 by 2026, making it an enticing investment opportunity for risk-tolerant individuals.
This insightful analysis, authored by Value Investors Club, offers a glimpse into Citigroup’s current standing and future prospects, providing valuable information for investors seeking potential growth opportunities in the banking sector. The report, published three months ago, sheds light on Citigroup’s performance metrics and strategic initiatives, presenting a compelling case for those interested in the bank’s evolving trajectory and its potential to deliver strong returns over the coming years.
A look at Citigroup Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysis of Citigroup Inc‘s Smartkarma Smart Scores reveals a promising long-term outlook for the company. With a top score in Value and Momentum, Citigroup Inc appears to be well-positioned in terms of undervaluation and positive market sentiment. Additionally, a strong score in Dividend indicates promising returns for investors seeking income. However, lower scores in Growth and Resilience suggest areas where Citigroup Inc may need to focus on to sustain long-term success.
Citigroup Inc, a diversified financial services holding company, caters to a wide range of consumer and corporate customers globally. Providing services such as investment banking, retail brokerage, corporate banking, and cash management products, Citigroup Inc has established itself as a key player in the financial services industry. By leveraging its strengths in value and momentum, coupled with a solid dividend score, Citigroup Inc shows potential for growth and stability in the years to come.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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