Citigroup ( C ) fourth quarter 2024 earnings beat

Citigroup shares jumped Wednesday after fourth-quarter earnings beat estimates on the top and bottom lines, reflecting broad-based strength across the bank.

“2024 was a critical year and our results show that our strategy is delivering as intended and driving stronger performance across our businesses. Our net income increased nearly 40% to $12.7 billion and we exceeded our full-year revenue targets , including record years in Services , Wealth and US Personal Banking,” CEO Jane Fraser said in a press release.

Shares rose about 5% in premarket trading.

Here’s how the company fared against LSEG analysts’ consensus estimates:

• Earnings: $1.34 per a share against an expected $1.22
• Revenue: $19.58 billion vs. $19.49 billion expected

Citi had net income of $2.86 billion, an improvement from a net loss of $1.84 billion a year ago, as the company’s results were hit by a series of charges that Citi had booked in the final period of 2023.

The bank said it expected its return on tangible common equity to be between 10% and 11% in 2026 as it continues to make investments and reshape its business. That range is below the bank’s stated medium-term target of 11% to 12%.

“This level is a waypoint, not a destination. We intend to improve returns well above this level and deliver Citi’s full potential to our shareholders,” Fraser said.

Citi also announced a $20 billion share buyback.

The bank reported growth across several different business units during the fourth quarter. Investment banking in particular was a bright spot, with revenue up 35% year over year to $925 million. Citi said continued momentum in the issuance of investment-grade corporate debt helped boost that area of ​​the business. As a result, total banking revenue grew by 12%, rising to 27% when the effect of loan hedging is included.

Market revenue rose 36% year-over-year to $4.58 billion, with both the fixed income and equity businesses growing. Fixed income market revenue of $3.48 billion was well above the $2.95 billion that analysts had forecast, according to StreetAccount.

Revenue for the asset and service units increased by 20% and 15% year-on-year respectively.

Citi’s credit costs for the quarter were $2.59 billion. That was down from $3.55 billion a year ago and $2.68 billion in the third quarter. The bank added a net $203 million to its allowance for credit losses, also down from prior periods.

On the analyst call later Wednesday, investors will be looking for progress updates on Fraser’s turnaround efforts. Fraser took over the bank in March 2021 and has focused on slimming the business, including selling some international units.

Citi’s stock performed strongly in 2024, rising nearly 37% on the year. The stock was up more than 4% so far this year through Wednesday.