VV Shots In many ways, Citigroup (NYSE:C) has long been the ‘sick man’ of the systemically important banks and its share price underperformance has reflected this. But there’s a price for everything, and at the current discount to underlying book, Citi is quickly emerging as a value investor favorite – note Berkshire Hathaway (BRK.B) swapping its long-held Wells Fargo (WFC) position for Citi and, more recently, backing CEO Fraser’s reorganization plan. Despite another miss in Q4, the forward-looking upd ...

Warren Buffett needs little introduction.The Berkshire Hathaway (BRK.A 0.92%) (BRK.B 1.13%) CEO is regarded as the greatest investors of all time, and it's clear why. His conglomerate has doubled the annual return of the S&P 500 index over a nearly 60-year career, averaging 19.8% compared to 9.9% for the broad-market index. Buffett is also admired because thousands of investors have gotten rich with him simply by buying and holding shares of Berkshire Hathaway. Any investor can follow along with Berkshire's ...

Bank stock Citigroup Inc (NYSE:C) is up 4% in 2024, but has cooled off since scraping a nearly two-year high of $54.74 on Jan. 4. Thanks to a 1% post-earnings pop on Jan. 12, C is on the move again and could make another run at multi-year highs, if past is precedent. Citigroup stock's recent highs come amid historically low implied volatility (IV), which has been a bullish combination in the past. Per Schaeffer's Quantitative Analyst Rocky White, there were three other signals over the past five years when ...

NEW YORK--(BUSINESS WIRE)--Citi and LuminArx Capital today announced the launch of Cinergy, a strategic financing vehicle in the rapidly growing private lending market. Launched by LuminArx Capital, Cinergy will offer a broad range of private credit solutions to companies, including Citi’s global client base. It will invest across multiple asset classes, including asset-backed credit (commercial, consumer and residential) and corporate debt across the capital structure. To support Cinergy, LuminArx and ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Citigroup Inc. (C) is planning to eliminate 20,000 job positions, excluding its workforce in Mexico, over the medium term. As the company announced net loss of $1.8 billion for fourth-quarter 2023, the decision will help improve its performance. In fact, these job cuts would result in savings of approximately $2-$2.5 billion over the medium term.For 2024, C expects adjusted expenses to be approximately in the range of $53.5-$53.8 billion, down from $54.3 billion projected previously. The decline is likely t ...

Spencer PlattCitigroup (NYSE:C) reported earnings for the December quarter on 12th January, and surprised investors with quite a few notable insights: On the negative, the U.S. bank reported a worse-than-expected topline and a disappointing $1.8 billion loss. On the positive, the loss was mostly driven by restructuring charges and other non-operating costs. In fact, Citi management shared ambitions to accelerate the multi-year restructuring efforts, announcing a projected 20,000 job cuts. Following the ...

Mario Tama Thesis Citi (C) reported earnings on January 12, 2024, that beat EPS estimates, but trailed revenue expectations. Citi is a mammoth organization spanning the globe, and while it took some impairment charges around its Russia and Argentina businesses, its Tier 1 capital ratio stands at a very healthy 13.3%: Q4 2023 Results (Citi) It seems that Armageddon is priced in the common shares, with the bank's tangible book value per share at $86.19 while its common shares are trading at $52/share. In this ...

Financial Data and Key Metrics Changes - In Q4 2023, Citigroup reported a net loss of $1.8 billion and a diluted EPS of -$1.16, primarily due to a $1.3 billion reserve build related to transfer risk and a nearly $900 million negative revenue impact from the Argentine currency devaluation [10][20] - For the full year 2023, total revenues were $77.1 billion, below the guidance of $78 billion to $79 billion, largely due to the Argentine devaluation and softer market performance [24][14] - The CET1 capital ratio increased to 13.3%, approximately 100 basis points above the regulatory requirement [30] Business Line Data and Key Metrics Changes - Services revenues increased by 16% for the full year to $18.1 billion, despite the impact of the Argentine devaluation [22][11] - Markets revenues decreased by 6% to $18.9 billion, primarily due to lower volatility and a significant slowdown in December [23] - Banking revenues decreased by 15% to $4.6 billion, while investment banking revenues were relatively flat, gaining share amidst a declining wallet [23][12] - Wealth revenues decreased by 5% to $7.1 billion, primarily due to a shift in deposit mix towards higher-yielding products [23] Market Data and Key Metrics Changes - In the US Personal Banking segment, revenues increased by 12%, driven by higher net interest margins and interest-earning balances growth [39] - Investment banking activity in Asia rebounded with quarterly revenues up 21% [12] - The overall banking revenue continued to be impacted by a weak wallet globally [12] Company Strategy and Development Direction - Citigroup is focused on simplifying its organization and executing its transformation strategy, with a goal of achieving over $2 billion in run rate savings through the elimination of 20,000 positions [7][45] - The company aims to enhance connectivity across its five core businesses and improve client focus [7][8] - Investments in technology and digital capabilities are prioritized to support growth and improve operational efficiency [26][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 is a critical year for the company, emphasizing the need to deliver on medium-term targets [15][16] - The macro environment is expected to remain challenging, with moderating rates and inflation, but Citigroup is well-positioned to support clients [15][16] - Management expressed confidence in achieving a revenue growth target of 4% to 5% over the medium term [16][46] Other Important Information - Citigroup has completed divestitures of nine of its 14 international consumer franchises and is winding down nearly 70% of its total retail loans and deposits in certain countries [8] - The company has invested over $12 billion in technology in 2023, focusing on digital innovation and client experience enhancements [26] Q&A Session Summary Question: Why is this restructuring different from previous attempts? - Management highlighted that the current restructuring focuses on simplifying the organization and increasing accountability, with a commitment to long-term transformation and addressing past issues [50] Question: How will the company balance near-term profitability with necessary investments? - Management acknowledged the balancing act and emphasized the need for disciplined investments in growth areas while managing expenses effectively [55] Question: What is the outlook for Services growth in the next two years? - Management indicated that Services has strong core business momentum and a healthy pipeline, suggesting potential for continued growth despite rate changes [56]

Citigroup on Friday said it will slash 20,000 jobs. The reductions, detailed in the company’s fourth-quarter financial results deck, can be linked to Citi continuing to execute its ongoing reorganization.Citi will axe the positions "over the medium-term," something that should ultimately bring its expenses down by $2-2.5 billion, according to the company.  The job cuts will shrink the roughly 200,000-person workforce excluding Mexico that Citi reported it employed at 2023’s year-end by 10%. When counting Me ...