Citigroup Inc C reported a first-quarter fiscal 2024 revenue decline of 2% year-over-year to $21.10 billion, beating the consensus of $20.39 billion. GAAP EPS of $1.58 beat the consensus of $1.20.
Net credit losses for the fourth quarter were $2.30 billion, up 77% year-over-year.
Services revenue grew 8% year over year to $4.77 billion, mainly due to higher net interest income across Treasury and Trade Solutions (TTS) and Security Services.
Markets revenue declined by 7% Y/Y to $5.38 billion, driven by a decline in Fixed Income.
Banking revenue increased 49% Y/Y to $1.71 billion, driven by Investment Banking fees.
U.S. Personal Banking revenue grew 10% Y/Y to $5.2 billion, driven by higher net interest income.
Wealth revenue declined 4% year over year to $1.7 billion due to lower deposit spreads. All other revenue declined 9% year over year to $2.4 billion.
Net income of $3.4 billion decreased 27% year over year, primarily due to higher expenses and credit costs. Operating expenses stood at $14.2 billion, an increase of 7% year over year.
The total allowance for credit losses on loans was $18.3 billion, with a reserve-to-funded loans ratio of 2.75%, compared to $17.2 billion, or 2.65% of funded loans, at the end of the prior-year period.
Citigroup's end-of-period loans were $675 billion at the quarter's end, up 3% year over year, mainly reflecting growth in U.S. Personal Banking and higher loans in Markets.
At quarter end, deposits were ~$1.3 trillion, down 2% from the prior year. It was primarily due to a reduction in Services, reflecting quantitative tightening.
At the end of the quarter, Citigroup's book value per share was $99.08 (+3% Y/Y), and its tangible book value was $86.67 (+3% Y/Y).
Outlook: Citigroup reiterated fiscal 2024 adjusted revenue outlook of $80.00 billion—$81.00 billion vs. the consensus of $73.69 billion.
Citigroup stock gained over 29% in the last 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Bank ETF FTXO and Opal Dividend Income ETF DIVZ.
Price Action: C shares are trading higher by 1.53% at $61.64 premarket on the last check Friday.
Citibank. Photo via Shutterstock
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