10-QPeriod: Q1 FY2024

CITIGROUP INC Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 3, 2024For Securities:CC-PNC-PR

Summary

Citigroup Inc. reported a net income of $3.4 billion, or $1.58 per diluted share, for the first quarter of 2024. This represents a 27% decrease compared to the prior year's first quarter, primarily driven by higher expenses and cost of credit, partially offset by revenue growth when excluding divestiture-related impacts. Total revenues, net of interest expense, were $21.1 billion, a 2% decrease on a reported basis. Excluding divestiture-related impacts of approximately $1 billion, revenues increased by 3%, led by strong performance in Banking, U.S. Personal Banking (USPB), and Services. Markets and Wealth segments saw revenue declines. Operating expenses rose 7% to $14.2 billion, impacted by a $251 million FDIC special assessment, repositioning costs, and restructuring charges. The cost of credit increased by 20% to $2.4 billion, largely due to higher net credit losses in USPB's cards portfolio. Citigroup maintained a robust Common Equity Tier 1 (CET1) capital ratio of 13.5%, exceeding regulatory requirements. Overall, Citigroup demonstrated progress towards its strategic priorities, with notable revenue growth in its Banking segment driven by investment banking and corporate lending, and continued strength in Services. Investors should monitor the ongoing impact of higher credit costs, particularly in the USPB segment, and the company's progress in managing expenses while investing in strategic growth initiatives.

Financial Highlights

39 data points
Beta

Revenue

$21.02B

Net Income

$3.37B

16.0% Net Margin

EPS (Diluted)

$1.58

Total Assets

$2.43T

Cash & Equivalents

$272.73B

Free Cash Flow

-$12.44B

Financial Statements
Beta
Revenue$21.02B
Operating Income$3.37B
Interest Expense$22.72B
Net Income$3.37B
EPS (Basic)$1.59
EPS (Diluted)$1.58
Shares Outstanding (Basic)1.91B
Shares Outstanding (Diluted)1.94B

Key Highlights

  • 1Net income decreased 27% year-over-year to $3.4 billion ($1.58 per diluted share).
  • 2Total revenues were $21.1 billion, down 2% reported, but up 3% excluding divestiture-related impacts.
  • 3Operating expenses increased 7% to $14.2 billion, influenced by FDIC special assessment and restructuring charges.
  • 4Cost of credit rose 20% to $2.4 billion, driven by higher credit losses in USPB's cards portfolio.
  • 5Banking segment revenues surged 49% (35% excluding loan hedge impacts), driven by Investment Banking and Corporate Lending.
  • 6Services segment revenues increased 8%, led by strong performance in Treasury and Trade Solutions (TTS) and Securities Services.
  • 7Common Equity Tier 1 (CET1) capital ratio remained strong at 13.5%.

Frequently Asked Questions

Citigroup reported a net income of $3.4 billion ($1.58 per diluted share) for Q1 2024, a 27% decrease from $4.6 billion ($2.19 per diluted share) in Q1 2023. This decline was primarily due to higher operating expenses and a higher cost of credit, although revenues excluding divestiture-related impacts showed growth.

The Banking segment experienced a significant revenue increase of 49% (35% excluding loan hedge impacts), driven by strong performance in Investment Banking and Corporate Lending. The Services segment also saw an 8% revenue increase, supported by Treasury and Trade Solutions (TTS) and Securities Services. However, the Markets segment's revenue decreased by 7%, and the Wealth segment's revenue declined by 4%.

Operating expenses increased by 7% to $14.2 billion. Key drivers included an incremental FDIC special assessment of $251 million, repositioning costs of $258 million, and net restructuring charges of $225 million, in addition to inflation and volume-related expenses.

The cost of credit increased by 20% to $2.4 billion. This was primarily driven by higher net credit losses in USPB's Branded Cards and Retail Services, attributed to the continued maturation of loan vintages originated during the pandemic and the impact of higher inflation and interest rates.

Citigroup maintained a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio under the Basel III Standardized Approach at 13.5% as of March 31, 2024. This ratio comfortably exceeded the required regulatory CET1 Capital ratio of 12.3%, demonstrating ample capital buffers.