Citigroup delivered a strong financial performance as it reported its fourth-quarter earnings on Wednesday morning, just before Wall Street's opening bell. The bank exceeded analysts' estimates on both the top and bottom lines, showcasing significant growth driven by its investment banking prowess. Notably, markets revenue surged by 36% compared to the previous year, fueled by substantial gains in both the fixed income and equity businesses.
The positive momentum extended beyond markets revenue. Citigroup's stock emerged as a standout performer in 2024, climbing nearly 37% over the year. During the fourth quarter, the bank experienced impressive growth across multiple business units. Banking revenue saw a 12% increase, which expanded to 27% when considering the impact of loan hedges.
Investors responded positively to Citigroup's financial results, with shares rising more than 2% in premarket trading. The bank's net income reached $2.86 billion for the quarter, marking a significant turnaround from the net loss of $1.84 billion recorded a year earlier. CEO Jane Fraser's turnaround efforts remain a focal point for investors seeking updates on Citigroup's progress.
Revenue growth extended to the wealth and services segments, which climbed by 20% and 15%, respectively, on a year-over-year basis. This growth underscores Citigroup's diversified business model and its ability to capitalize on opportunities across different markets.
As Citigroup navigates the complexities of year-over-year comparisons for fourth-quarter income metrics, it is noteworthy that charges booked in the final period of 2023 may affect these comparisons. Despite this, Citigroup has demonstrated resilience and adaptability in a dynamic market environment.
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