Citi Stock Rises After Q4 Profit Beat, Fresh $20 Billion Share Buyback Plan: Retail Elated
The New York-based lender reported adjusted earnings of $1.34 per share compared with the average analysts’ estimate of $1.22 per share, according to Stocktwits data.
FollowCitigroup shares rose more than 6% on Wednesday after the bank topped Wall Street estimates for fourth-quarter profit on strong results across segments.
The New York-based lender reported adjusted earnings of $1.34 per share compared with the average analysts’ estimate of $1.22 per share, according to Stocktwits data.
Citi’s fourth-quarter revenue rose 12% to $19.58 billion, topping the market estimate of $19.51 billion.
However, net interest income (NII) fell 2% to $2.84 billion as gains from higher deposit volumes were offset by a decline in interest rates in Argentina.
The bank also reported a net income of $2.9 billion during the quarter compared with a net loss of $1.8 billion a year ago.
Citi also authorized a fresh multi-year share repurchase plan worth $20 billion.
U.S. Personal Banking revenue grew 6% to $5.2 billion, backed by higher net interest income due to loan growth in cards and higher non-interest revenue due to lower partner payments.
Citi’s investment banking revenue surged 35% to $925 million during the reported quarter, driven by higher deal completions due to favorable macroeconomic conditions.
However, the bank lowered its 2026 return on tangible common equity (ROTCE) expectation to 10% to 11%, compared with the 11% to 12% projected earlier.
CEO Jane Fraser said it was changed to make additional investments in Citi’s businesses. ROTCE is a metric used to judge a company’s performance.
Citi also forecast a 3% to 4% rise in 2025 revenue.
Retail sentiment on Stocktwits remained in ‘extremely bullish’ (95/100) territory and hit a one-year high, while retail chatter soared to ‘extremely high’ levels.
C’s Sentiment Meter and Message Volume as of 11.03 a.m. ET on Jan. 15, 2025 | Source: Stocktwits
Stocktwits user comments reflected enthusiasm following the fourth-quarter earnings report.
Some users also expressed satisfaction with the new share buyback plan and praised CEO Fraser.
Citi’s rivals JP Morgan and Wells Fargo also topped Wall Street expectations for quarterly profit.
Over the past year, the stock is up 49.6%.
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