Citigroup's Stellar Q4 Performance: A Transition Year Ends with Momentum

Citigroup surpassed Q4 profit estimates with robust trading and dealmaking activities, launching a $20 billion buyback program. With shares up 5%, CEO Jane Fraser emphasizes ongoing strategic growth and transformation. Improved revenues in trading, investment banking, and wealth management mark positive momentum amid interest rate adjustments and pro-business policies.

Citigroup has reported a significant fourth-quarter profit, exceeding market expectations driven by strong trading and dealmaking activities. The bank has also announced a $20 billion share buyback program, contributing to a 5% premarket surge in its shares.

CEO Jane Fraser noted the successes of 2024, highlighting the strategic path that is meant to enhance performance, although indicating more investments and the transformation journey continue. With a net income of $2.9 billion, Citigroup moved from a loss position a year prior, reflecting substantial revenue growth.

The bank's trading desks experienced a remarkable year, supported by record-high U.S. equities, lifting market revenue. Investment banking revenues rose significantly as corporate clients engaged in more financial activities, anticipating favorable federal policies. Investors are watching if Fraser's growth-focused strategies can tackle regulatory challenges.

(With inputs from agencies.)