Citi Moving in the Right Direction Following a Challenging 2023, Analysts

Citigroup (NYSE: C) posted higher-than-expected losses in its 4Q 2023 earnings. The bank reported a net loss of $1.8 billion in 4Q 2023, down from a net profit of $3.5 billion in 3Q 2023. Revenues were down -13% sequentially to $17.5 billion. Citi booked a string of impairments and charges linked to its exit from Russia, the devaluation of the Argentinian peso, and costs related to its corporate restructuring. The bank is now divided into 5 main business lines; US Personal Banking, Services, Markets, Commercial Banking, and Wealth Management. The restructuring measures, although contributing to losses in 2023, are seen as crucial for long-term efficiency. In 2023, Citi’s US Personal Banking, Markets, and Wealth Management segments saw double-digit net income declines, while the Commercial Banking segment reported a loss of $48 million.

According to Visible Alpha consensus, despite a turbulent 2023, analysts expect Citi to bounce back in 2024, with net income across major business segments projected to see a recovery. Overall, after declining -38% year over year in 2023, net income is projected to grow +35% in 2024, reaching over $12 billion. The bank’s US Personal Banking, which is its largest segment by revenue, is the only segment where net incomes are estimated to decline further in 2024.