Citigroup (C, Financial) has reported that its operations have achieved positive leverage both across individual businesses and at the consolidated group level. The company emphasized its commitment to executing its strategy with discipline and intensity, highlighting significant advancements in its transformation efforts. The services segment was identified as a key asset, contributing to strong performance.
The bank noted substantial growth in its branded card offerings and announced a strong quarter for its retail banking division. Additionally, Citigroup expressed satisfaction with the outcomes of recent stress tests. The company is focused on enhancing efficiencies by refining processes, platforms, and driving automation.
Citigroup remains on schedule with its data strategy and is highly focused on fostering innovation. The firm continues to attract top talent, underscoring its leadership in the financial sector. Despite economic uncertainties, the strength of the U.S. economy has surpassed expectations, supporting the bank's relentless focus on effective execution as shared during its Q2 earnings conference call.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Citigroup Inc (C, Financial) is $94.07 with a high estimate of $110.00 and a low estimate of $71.21. The average target implies an upside of 5.71% from the current price of $88.99. More detailed estimate data can be found on the Citigroup Inc (C) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Citigroup Inc's (C, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Citigroup Inc (C, Financial) in one year is $61.26, suggesting a downside of 31.16% from the current price of $88.99. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Citigroup Inc (C) Summary page.
C Key Business Developments
Release Date: April 15, 2025
- Net Income: $4.1 billion.
- Earnings Per Share (EPS): $1.96.
- Return on Tangible Common Equity (RoTCE): 9.1%.
- Total Revenue: $21.6 billion, up 3% year-over-year.
- Expenses: $13.4 billion, down 5% year-over-year.
- Cost of Credit: $2.7 billion.
- Capital Returned to Shareholders: $2.8 billion, including $1.75 billion in buybacks.
- CET1 Capital Ratio: 13.4%.
- Tangible Book Value Per Share: $90.
- Services Revenue: Highest first-quarter revenue in a decade.
- Markets Revenue: Up 12%.
- Investment Banking Revenue: Up 12%, with M&A revenue nearly doubling.
- Wealth Revenue: Up 24%.
- US Personal Banking Revenue: Up 2%.
- Average Loans: Increased 1%.
- Average Deposits: Increased 2%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Citigroup Inc (C, Financial) reported a strong first quarter with net income of $4.1 billion and earnings per share of $1.96.
- The company achieved a 5% year-over-year decline in expenses, demonstrating disciplined expense management.
- Citigroup Inc (C) delivered its third consecutive quarter of positive operating leverage across all five business lines.
- The Services division recorded its highest first-quarter revenue in a decade, with significant growth in TTS and Security Services.
- The company returned $2.8 billion in capital to shareholders, including $1.75 billion in buybacks, showcasing a commitment to returning capital.
Negative Points
- The macroeconomic outlook is more negative than anticipated, with prolonged uncertainty potentially impacting confidence.
- Non-interest revenues, excluding markets, were down 6%, offsetting gains in banking and wealth.
- The firm's cost of credit was $2.7 billion, reflecting uncertainty and deterioration in the macroeconomic outlook.
- Corporate lending revenues declined 1% due to lower loan balances and higher recoveries in the prior year.
- Retail services revenues declined 11%, primarily driven by higher partner payment accruals.
