Summary
Citigroup Inc. (C) reported solid financial results for the second quarter of 2024, with net income increasing by 10% year-over-year to $3.2 billion, or $1.52 per diluted share. Total revenues rose 4% to $20.1 billion, driven by broad-based growth across all reportable operating segments, including an approximately $400 million episodic gain from the Visa B exchange. The company also achieved a 2% decrease in operating expenses to $13.4 billion, benefiting from organizational simplification and cost-reduction efforts, though this was partially offset by transformation investments and civil money penalties totaling $136 million. However, the cost of credit increased significantly by 36% to $2.5 billion, primarily due to higher net credit losses in the U.S. Personal Banking segment, specifically in its credit card portfolios. This increase is attributed to the maturation of loan vintages and macroeconomic pressures from higher inflation and interest rates. Despite this, Citigroup maintained a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio increasing to 13.6% under the Standardized Approach, well above its required regulatory ratio. The company also made progress on its multiyear transformation strategy, including exiting certain consumer banking businesses in Asia and Mexico, and continued its focus on improving risk management and data quality, despite being subject to new civil money penalties from the Federal Reserve and the Office of the Comptroller of the Currency.
Financial Highlights
39 data points| Revenue | $20.03B |
| Operating Income | $6.59B |
| Interest Expense | $22.49B |
| Net Income | $3.22B |
| EPS (Basic) | $1.54 |
| EPS (Diluted) | $1.52 |
| Shares Outstanding (Basic) | 1.91B |
| Shares Outstanding (Diluted) | 1.95B |
Key Highlights
- 1Net income increased 10% year-over-year to $3.2 billion.
- 2Total revenues grew 4% to $20.1 billion, boosted by an episodic gain from the Visa B exchange.
- 3Operating expenses decreased 2% to $13.4 billion, driven by cost savings.
- 4Cost of credit increased 36% to $2.5 billion, primarily due to higher credit card losses in U.S. Personal Banking.
- 5Common Equity Tier 1 (CET1) capital ratio improved to 13.6% (Standardized Approach), exceeding regulatory requirements.
- 6Citigroup continued its transformation strategy, including progress on exits from consumer banking businesses in Asia and Mexico.
- 7Civil money penalties of $136 million were incurred, impacting expenses, alongside ongoing investments in transformation.