Citi Delivers Strong Q4 Results, Exceeds Revenue Target with Robust Fee Growth
Citi, one of the world's leading financial institutions, has reported a strong fourth quarter in 2024, exceeding its full-year revenue target and delivering robust fee growth across various businesses. The company's CEO, Jane Fraser, attributed this success to strategic clarity and good momentum across all business units.
Fraser highlighted that economies have shown resilience despite central bank hikes and inflation concerns, with the US remaining at the heart of the macro picture. Growth is being driven by a strong innovative corporate sector, while China's growth has been slower than expected but still holds promise for further stimulus. Europe continues to underachieve, but emerging markets such as India, the Middle East, and Asia have reemerged as bright spots.
Citi's net income rose nearly 40% to $12.7 billion in 2024, exceeding its full-year revenue target with revenues up 5% ex divestitures. Fee revenue jumped 17%, and the company delivered expenses within guidance while improving efficiency ratio by 340 bps. Return on Tangible Common Equity (RoTCE) grew over 200 bps from a low level.
The five core businesses each generated positive operating leverage for the full year, including Services, which rose 9% with another record year despite a low rate environment. TTS and Security Services both saw growth in market share. Markets was up 6%, demonstrating the benefit of Citi's diversified product mix. Equities surged 26% in what was a record year, while Banking climbed 32% as the company gained share across all three investment banking products.
In particular, Wealth saw a turning point in 2024 with revenue rising 7% for the year, driven by fee growth of 18%. Citigold in Asia performed exceptionally well, and net new investment asset flows grew 40%. The business attracted top talent throughout the year, including Kate Moore as CIO and Ann Mosca as Head of Lending.
The company also announced a significant partnership extension with American Airlines, ensuring its co-branded partnership enters its fifth decade in 2026. Furthermore, the acquisition of the Barclays portfolio will make Citi the exclusive partner for American Airlines, enabling more value creation for cardholders and higher returns for shareholders.
Citi's tangible book value per share grew by 4%, and the company ended 2024 with a Capital and Regulatory Earnings (CET1) ratio of 13.6%, approximately 150 bps above its regulatory capital requirement. The company repurchased $1 billion in common shares during the fourth quarter, returning almost $7 billion in capital to shareholders.
