Citigroup beats by $0.12, reports revs in-line; guides FY25 revs above consensus (73.50)
- Reports Q4 (Dec) earnings of $1.34 per share, $0.12 better than the FactSet Consensus of $1.22; revenues rose 12.3% year/year to $19.58 bln vs the $19.51 bln FactSet Consensus.
- Revenues increased 12% from the prior-year period, on a reported basis, driven by growth in each of Citi's businesses and the smaller impact from the currency devaluation in Argentina, partially offset by a decline in All Other. Excluding the impact of the Argentina currency devaluation and divestiture related impacts in both periods, revenues were up 7%.
- Citigroup's total allowance for credit losses was approximately $22.2 billion at quarter end, compared to $21.8 billion at the end of the prior-year period. Total ACL on loans was approximately $18.6 billion at quarter end, compared to $18.1 billion at the end of the prior-year period, with a reserve-to-funded loans ratio of 2.7%, unchanged from the end of the prior-year period. Total non-accrual loans decreased 16% from the prior-year period to $2.7 billion. Corporate non-accrual loans decreased 27% from the prior-year period to $1.4 billion. Consumer non-accrual loans were largely unchanged from the prior-year period at $1.3 billion.
- Citigroup's end-of-period loans were $694 billion at quarter end, up 1% versus the prior-year period, largely reflecting growth in Branded Cards and Retail Banking in USPB and higher loans in Markets and Services.
- Outlook: Co issues upside guidance for FY25, sees FY25 revs of $83.5-84.5 bln vs. $83.37 bln FactSet Consensus.
- NII ex-Markets up modestly YoY
- Expenses: Slightly lower than ~$53.8 billion
- Cost of Credit: Cards NCL rates around the top of the 2024 ranges for both businesses, with higher losses in 1H, consistent with seasonal patterns, subject to changing conditions; ACL build will be a function of macroeconomic environment and business volumes
- Capital:
- Board of Directors has authorized a $20 billion common share repurchase program
- $1.5 billion of common share repurchases planned for 1Q25