Citi’s Stock Jumps To 17-Year High After Q2 Earnings Beat, $4B Buyback Plan

The bank’s plans to repurchase at least $4 billion in common stock this quarter follow strong “stress test” results from the second quarter.

Citigroup’s (C) stock hit a 17-year high on Tuesday after its second-quarter earnings beat Wall Street estimates and the bank announced plans to repurchase at least $4 billion of its shares this quarter.

Citi’s stock hit $90.69 in midday trade, last seen in November 2008. On Stocktwits, retail sentiment around the shares jumped to ‘extremely bullish’ from ‘bearish’ territory a week ago amid chatter rising to ‘extremely high’ levels from ‘high’ over the same period.

The bank reported earnings per share (EPS) of $1.96, beating estimates of $1.60, according to Koyfin data. Its revenue for the quarter came in at $21.7 billion, ahead of Wall Street’s estimate of $20.9 billion. The bank’s profit jumped by 25% year-on-year.

During the earnings call, executives said the bank remains “steadfast” in its transformation goals and expects related expenses to decline starting next year. They said Citi plans to repurchase at least $4 billion in common stock this quarter following strong “stress test” results from the second quarter (Q2), and highlighted progress in automation, credit trends, and branded cards.

Management also reiterated its confidence in meeting the long-term targets laid out at its investor day and stated that strategic priorities are now shifting toward performance optimization and the expansion of its commercial banking arm.

Citi stated that it continues to explore the issuance of a stablecoin, emphasizing innovation and leadership recruitment as key drivers heading into 2025. Citi CEO Jane Fraser said the bank’s services segment was its ‘crown jewel’, driving the 8% jump in revenue seen year-on-year in the second quarter. 

Citi’s stock has gained more than 27% this year and nearly 40% over the past 12 months.

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