Summary
Citigroup Inc. reported a solid first quarter of 2023, demonstrating continued progress towards its strategic priorities. Total revenues increased by 12% year-over-year, driven by a strong performance in net interest income and gains from divestitures, though excluding these impacts, revenue growth was 6%. The company continued its consumer banking business divestitures, completing sales in India and Vietnam. While expenses rose by 1% (5% excluding divestiture impacts), primarily due to transformation investments, risk and control enhancements, and inflation, this was partially offset by productivity savings. Key financial highlights include a robust Common Equity Tier 1 (CET1) capital ratio of 13.4%, well above regulatory requirements. The cost of credit increased to $2.0 billion, reflecting a build in the allowance for credit losses and higher net credit losses, particularly in the cards business, as the company anticipates further normalization towards pre-pandemic levels in 2023. Citigroup returned $1.0 billion to common shareholders through dividends, while common share repurchases remained paused in anticipation of potential capital impacts from divestitures.
Financial Highlights
39 data points| Revenue | $21.45B |
| Operating Income | $4.61B |
| Interest Expense | $16.05B |
| Net Income | $4.61B |
| EPS (Basic) | $2.21 |
| EPS (Diluted) | $2.19 |
| Shares Outstanding (Basic) | 1.94B |
| Shares Outstanding (Diluted) | 1.96B |
Key Highlights
- 1Revenues increased 12% year-over-year to $21.4 billion, driven by a 23% increase in net interest income and gains from consumer banking divestitures.
- 2Net income attributable to common shareholders was $4.3 billion, or $2.19 per diluted share, up 8% from the prior year.
- 3The Common Equity Tier 1 (CET1) capital ratio improved to 13.4% as of March 31, 2023, from 11.4% a year prior.
- 4Provisions for credit losses increased significantly to $2.0 billion, up from $0.8 billion in Q1 2022, due to a build in the allowance for credit losses and higher net credit losses, particularly in consumer banking.
- 5Expenses increased 1% year-over-year to $13.3 billion, primarily due to investments in transformation, risk and controls, and inflation.
- 6Citigroup continued to execute its divestiture strategy, completing the sales of its India and Vietnam consumer banking businesses.
- 7The company returned $1.0 billion to common shareholders in the form of dividends, while share repurchases were paused.