- Citigroup’s First Quarter (1Q) FICC Sales & Trading Revenue met the estimates.
- The investment banking revenue was $903 million, exceeding the estimate of $776.9 million.
- Citigroup achieved a total revenue of $21.10 billion, surpassing the estimate of $20.38 billion.
- The Earnings Per Share (EPS) for the quarter was $1.58.
- Citigroup’s total cost of credit for the quarter was $2.37 billion, which was lower than the estimated $2.64 billion.
- The return on average equity was 6.6%, higher than the estimated 4.97%.
- The return on average tangible common equity came in at 7.6%, beating the estimated 5.76%.
- Net charge-offs amount to $2.30 billion, slightly more than the estimated $2.18 billion.
- The quarter’s operating expense was at $14.20 billion.
- Total loans decreased to $674.6 billion, coming in under the estimated $688.44 billion.
- The bank’s efficiency ratio stood at 67.3%.
- The net interest income totalled to $13.51 billion.
Citigroup Inc on Smartkarma
Analysts on Smartkarma are closely monitoring Citigroup Inc, with notable coverage by Daniel Tabbush. Tabbush’s recent report, titled “Citigroup – Impairment Costs Far Higher than Any Recent Quarter & Net Interest Income near Halting“, expresses a bearish sentiment towards Citigroup’s current financial outlook. The report highlights that Citigroup is experiencing a significant increase in impairment costs, particularly from unfunded commitments, surpassing USD3.5bn in the fourth quarter of 2023 compared to previous averages of USD1.8-1.9bn. Additionally, the net interest income of Citigroup is starting to plateau, indicating potential challenges ahead in a rising rate environment.
The implications outlined in Tabbush’s analysis suggest a cautious stance towards large global banks, particularly major US banks like Citigroup and even HSBC Holdings. This assessment is influenced by the geopolitical risks impacting the banking sector. Smartkarma serves as a platform where independent analysts like Tabbush provide valuable insights into companies like Citigroup Inc, offering investors a diverse range of research reports to make informed investment decisions.
A look at Citigroup Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Citigroup Inc. has a solid overall outlook, with particularly high scores in the areas of value and momentum. The company’s strong value score indicates that it may be undervalued compared to its peers, presenting a potentially attractive investment opportunity. Additionally, Citigroup’s high momentum score suggests that the stock has been performing well in the market, which could indicate positive future price movements.
However, Citigroup’s scores for growth, resilience, and dividend are slightly lower. While the company may not be experiencing as robust growth or showing strong resilience compared to some other companies in the industry, its diverse range of financial services and global presence provide a strong foundation for long-term stability and growth potential.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
