Summary
Citigroup Inc. reported a net income of $14.8 billion, or $7.00 per diluted share, for the year ended December 31, 2022. This represents a decrease compared to the prior year's net income of $22.0 billion, or $10.14 per diluted share, primarily driven by higher cost of credit and increased operating expenses, partially offset by higher revenues. Despite the decrease in net income, the company demonstrated progress in its consumer banking divestitures, completing sales in five exit markets and working towards additional transactions. Furthermore, Citigroup maintained a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio increasing to 13.0% as of December 31, 2022, exceeding regulatory requirements. Key business segments like Institutional Clients Group (ICG) saw revenue growth, though Banking revenues declined. Personal Banking and Wealth Management (PBWM) revenues increased due to higher net interest income, but net income decreased significantly due to provisions for credit losses. Looking ahead, Citigroup anticipates higher expenses in 2023 driven by ongoing transformation investments, volume-related expenses, and inflation, alongside expectations for higher net credit losses, particularly in the cards business.
Financial Highlights
38 data points| Revenue | $75.34B |
| Operating Income | $15.08B |
| Interest Expense | $25.74B |
| Net Income | $14.85B |
| EPS (Basic) | $7.04 |
| EPS (Diluted) | $7.00 |
| Shares Outstanding (Basic) | 1.95B |
| Shares Outstanding (Diluted) | 1.96B |
Key Highlights
- 1Net income decreased to $14.8 billion ($7.00/share) in 2022 from $22.0 billion ($10.14/share) in 2021, impacted by higher credit costs and operating expenses.
- 2Total revenues increased 5% to $75.3 billion, driven by higher net interest income and gains on consumer banking business divestitures.
- 3Operating expenses increased 6% to $51.3 billion, reflecting investments in transformation, business growth, and risk and control initiatives, partially offset by productivity savings and divestitures.
- 4Cost of credit increased to $5.2 billion in 2022, compared to a benefit of $3.8 billion in 2021, primarily due to a net build in the allowance for credit losses.
- 5Common Equity Tier 1 (CET1) capital ratio improved to 13.0% from 12.2% at year-end 2021.
- 6Returned $7.3 billion to common shareholders in 2022 through dividends ($4.0 billion) and share repurchases ($3.3 billion).
- 7Continued progress on consumer banking business divestitures, closing sales in five exit markets.