Citigroup (C) FY 2025 Annual General Meeting April 29, 2025 02:40 PM ET Speaker0 Annual Meeting for Citigroup. Our host for today's call is John Dugan, Chair of the Board of Directors. I will now turn the call over to your host. Mr. Dugan, you may begin. Good morning, ladies and gentlemen. My name is John Dugan. I am the chair of the board of directors of Citigroup. Citi is hosting our annual meeting as a virtual meeting this year. We appreciate all of you joining us virtually. Joining the meeting today is ...

Core Insights - Citigroup, Inc. shares have increased by 8.2% since the release of its first-quarter 2025 results, outperforming the industry growth of 5.7%, indicating investor optimism regarding the bank's performance and positive market sentiment [1][4]. Financial Performance - Citigroup reported a net interest income (NII) of $14 billion for Q1 2025, a 4% increase year-over-year, driven by higher deposit spreads and increased loan balances, particularly in the U.S. Personal Banking and Services segments [5]. - Non-interest income rose to $7.6 billion, a 1% increase year-over-year, supported by strong performance in markets, banking, and wealth divisions, despite a decline in the All Other segment [6]. - Operating expenses decreased by 5% year-over-year to $13.4 billion, attributed to reduced FDIC special assessment expenses and lower compensation expenses [7]. - Total non-accrual loans fell by 2% year-over-year to $2.7 billion, while the allowance for credit losses on loans was $18.7 billion, down 2%. However, provisions for credit losses increased by 15% year-over-year to $2.7 billion, reflecting a deteriorating macroeconomic outlook [8]. Strategic Initiatives - Citigroup is undergoing a business restructuring to streamline operations and reduce expenses, including a plan to eliminate 20,000 jobs over two years, with approximately 10,000 jobs cut in 2024 [9][10]. - The company aims to keep expenses below $53.4 billion in 2025, down from $53.9 billion in 2024 [11]. - Citigroup has exited consumer banking in nine countries and completed the separation of its institutional banking operations in Mexico, which is expected to free up capital for higher-return segments like wealth management and investment banking [12]. Future Outlook - The company anticipates a compounded annual growth rate of 4-5% in revenues by the end of 2026 and aims for annualized run rate savings of $2-2.5 billion by 2026 [13]. - Citigroup projects NII (excluding Markets) to rise by 2-3% in 2025 compared to 2024 levels, supported by expected interest rate cuts [16]. - As of March 31, 2025, Citigroup's cash and total investments amounted to $761 billion, with total debt at $317.4 billion, indicating a strong liquidity position [16][17]. - The company has a $20 billion common stock repurchase program and has repurchased $1.75 billion of common shares in Q1 2025, with similar levels targeted for Q2 [18]. Valuation and Market Position - Citigroup is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.65X, below the industry average of 11.94X, indicating a potentially undervalued position relative to peers [22][25]. - The stock is cheaper than Bank of America and Wells Fargo, which have forward P/E multiples of 10.30X and 11.40X, respectively [25].

Group 1 - The article emphasizes a personal investment strategy focused on growth and dividend income, aiming for an easy retirement through a portfolio that prioritizes compounding dividend income and growth [1] - The strategy includes structuring the portfolio to generate monthly dividend income, which is enhanced through dividend reinvestment and annual increases [1] Group 2 - The author has disclosed a beneficial long position in shares of companies such as Citigroup (C), Bank of America (BAC), and SoFi (SOFI), indicating a personal investment interest in these stocks [1] - The article is presented as personal opinion and not as professional investment advice, highlighting the importance of individual research before making investment decisions [2][3]

Core Viewpoint - Citigroup's current share price of $63.25 represents a valuation of approximately 0.7 times its tangible book value per share of $91.52, indicating a significant discount in valuation [1]. Financial Metrics - The tangible book value per share for Citigroup is reported at $91.52 [1]. - The current share price is $63.25, leading to a valuation of around 0.7x tangible book value [1]. Investment Insights - The analysis emphasizes a focus on financials, deep value, special situations, and financial arbitrage, suggesting a strategy that seeks durable and uncorrelated cash flows [1].

Core Viewpoint - Citigroup presents a compelling investment opportunity as it trades at a significant discount to its tangible book value, making it attractive for value-focused investors [1][12][13] Company Overview - Citigroup is one of the largest banks in the U.S. but has struggled to keep pace with its peers due to its complex business structure and regulatory challenges [3] - The bank has faced fines for compliance issues and has underperformed in return on equity metrics [3] Leadership and Strategy - CEO Jane Fraser has been leading a transformation since taking over in 2021, focusing on revitalizing the bank by cutting bonuses, reducing management layers, and emphasizing core businesses [4] - The bank has hired thousands of dedicated staff to improve its operations and address regulatory scrutiny [4] Financial Performance - Citigroup reported strong first-quarter earnings, with a net income of $4 billion, reflecting a 21% year-over-year growth [5] - The return on tangible common equity (ROTCE) improved to 9.1% from 7.6% year-over-year, with a target of reaching 10% to 11% by next year [6] Market Conditions and Challenges - Recent market volatility may impact Citigroup's revenue streams, particularly in capital markets and initial public offerings (IPOs) [7][8] - Despite these challenges, the bank's investment banking segment saw a 12% year-over-year revenue growth, driven by advisory fees from mergers and acquisitions [9] Valuation and Investment Potential - Citigroup is currently trading at 0.73 times its tangible book value, representing a 27% discount compared to peers like Wells Fargo and Bank of America [12] - The recent sell-off has created an opportunity for investors to acquire Citigroup stock at a low valuation, with potential for growth if turnaround efforts succeed [13]

Citigroup (C -3.59%) is a bank you've likely heard of, given its long history and size. It is currently offering dividend investors a 3.5% forward dividend yield versus the 2.6% average for banks. That sounds attractive, but there's a history here. And you can get a roughly 5% yield from this giant industry peer that has been a more reliable dividend stock over time. Here's what you need to know.The problem with CitigroupThe big problem with Citigroup is what happened during the Great Recession. That was a ...

Highlights Citi is restructuring by exiting 14 international markets, simplifying management and focusing on five core businesses.  Citigroup reported a 23% increase in trading profits and strong earnings in Services and Wealth segments, despite rising credit costs and macroeconomic challenges. While U.S. Personal Banking hit a revenue record and net income more than doubled, the “All Other” segment was a drag due to legacy market wind-downs.  Turmoil can be challenging for everyday consumers bu ...

Citigroup Inc. (NYSE:C) Q1 2025 Earnings Conference Call April 15, 2025 11:00 AM ET Company Participants Jenn Landis - Head, Investor Relations Jane Fraser - Chief Executive Officer Mark Mason - Chief Financial Officer Conference Call Participants Glenn Schorr - Evercore Jim Mitchell - Seaport Global Mike Mayo - Wells Fargo Ebrahim Poonawala - Bank of America John McDonald - Truist Securities Ken Usdin - Autonomous Research Betsy Graseck - Morgan Stanley Erika Najarian - UBS Vivek Juneja - JPMorgan Gerard C ...

Citigroup Inc. C reported on Tuesday that the first-quarter fiscal 2025 revenue growth was 3% year-over-year and was $21.6 billion, beating the analyst consensus of $21.29 billion. This growth was driven by each of the five interconnected businesses.Excluding divestiture-related impacts in both periods, revenues also went up 3%.The U.S. banking giant reported earnings per share of $1.96, increased from $1.58 a year ago, beating the consensus of $1.84.Also Read: JPMorgan, Wells Fargo, Morgan Stanley, BNY Mel ...

April 15, 2025 First Quarter 2025 Our strategy and path forward remain unchanged Our Vision Be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in our home market of the United States Maximize unique global network Scale Wealth Target share gains in Services, Banking, Markets and U.S. Personal Banking Grow Commercial Banking client segment Enhance Business Performance Focus on five core interconnected businesses Exit 14i ...