The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. personal banking. In 2026, it is the third-largest bank by revenue in the U.S. behind Bank of America and JPMorgan Chase.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

GLOBAL-500-2023-Citi-Group

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Citigroup

Citigroup’s board boasts an impressive array of finance executives, and it scores high on gender diversity. Seven of the 13 directors are women, making it one of the most gender-inclusive boards in finance. Some of the accomplished and influential women on the board include Ellen Costello, the former CEO of BMO Financial; Grace Dailey, former deputy comptroller for Bank Supervision Policy and chief national bank examiner; former Citibank CEO Barbara Desoer; and current CEO Jane Fraser. At least two-thirds of the board is independent. Citigroup has seen solid growth this year. Its first-quarter revenue from its Asia Wealth division grew 20% because of its investment gains and new regional clients. The bank’s stock is up 20% year to date.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-036.-Citigroup

The third-largest commercial bank in the U.S. jumped eight spots on this year’s list as the company posted impressive revenue growth even with rising interest rates rattling the banking sector. 
<ul> 
 	<li>The bank posted an eye-popping $101 billion in revenue this year, up 27% from the year prior.</li> 
 	<li>The company reported a profit of $14.8 billion for 2022, down 32% from the year prior largely because of rising interest rates.</li> 
 	<li>In 2023, the bank’s first-quarter revenue from its Asia Wealth division grew 20%, boosted by investment gains and new regional clients.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Modern Boards 2022 Citigroup

Citigroup is the third-largest banking institution in the U.S., with over 200 million customer accounts in more than 160 countries. Its directors include five former and two current CEOs—including its own, Jane Fraser; and Renee James, the founder, chairman, and CEO of Ampere Computing. 
 
On the ESG front, in March 2021 Citigroup combined three of its investment-banking groups as part of a broader push to reduce carbon emissions. Fraser has vowed to achieve net-zero greenhouse gas emissions in Citigroup’s financing activities by 2050.  
 
Citigroup’s board lineup scored high on gender equality, board independence, and board expertise. Other notable names on its board include Ernesto Zedillo, former president of Mexico, and S. Leslie Ireland, the former assistant secretary for intelligence and analysis at the Treasury Department.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Citigroup

As of February 2022, Citigroup was the fourth-largest bank in the United States, with assets of $1.7 trillion. Under Jane Fraser, who became the first woman to run a major U.S. bank when she became CEO in March 2021, Citigroup has been reorganizing and refocusing. Revenue dropped 10% in 2021 as the bank began implementing a plan to exit banking and other services in 13 international markets. One of those markets is Russia—but Citi was still doing business there when Russia invaded Ukraine. In April 2022, Citigroup said it could face losses of as much as $3 billion related to its Russia exposure. At the time, Fraser also said the bank had 200 employees continuing to work in Ukraine, assisting clients with payroll, supply chains, and obtaining food.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-082-Citigroup

Citigroup made history in 2020 when it named the head of its consumer banking division, Jane Fraser, as successor to then-CEO Michael Corbat. In doing so, Citigroup became the first bulge bracket U.S. bank to be led by a woman. And so far, Fraser is signaling her willingness to go big and reorganize: Citigroup announced plans to shutter its consumer banking operations in 13 markets and has reshuffled leadership since the executive officially assumed her role. One mess that is still frustrating investors: In mid-2020 loan operators at Citi accidentally wired roughly $900 million to lenders of makeup company Revlon. While some recipients returned the funds, Citi has been unable to recoup hundreds of millions of dollars in the ongoing saga.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-33-Citigroup

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-070-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division as it has invested more deeply in providing banking services to corporations. Long considered second fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-031-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division while investing more deeply in providing banking services to corporations. Long considered second-fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. consumer cards.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Citigroup (C): Company Profile, Stock Price, News, Rankings

legacy

Citigroup

citigroup

Hello, and welcome to Citi's 4th Quarter 2024

Earnings Call. Today's call will be hosted by Jen Landis, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.

Thank you, operator. Good morning, and thank you all for joining our Q4 2024 earnings call. I am joined today by our Chief Executive Officer, Jane Fraser and our Chief Financial Officer, Mark Mason. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com, may contain forward looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SEC filings.

And with that, I'll turn it over to Jane.

Thank you, Jen, and a very good morning to everyone. I'm going to start with the macro backdrop and then walk you through our results for the full year. I'll share some thoughts on the progress we're making executing our strategy and then conclude with why we have decided to adjust our 2026 return target. We entered 2025 with strategic clarity and good momentum across all our businesses. From the global macro perspective, economies have done a good job tolerating hikes from central banks and inflation has clearly been receding.

While policies will certainly impact economic activity, whether in the form of tariffs or taxes, 2025 doesn't look that different from 2024. The U. S. Remains at the heart of the macro picture. Growth is not only being driven by the higher end consumer, but also by a strong innovative corporate sector.

China's growth has been slower than expected, but there is still the prospect of further stimulus. Europe continues to underachieve and many emerging markets have reemerged as bright spots, a trend which certainly benefits us given our global network and deep presence in countries such as India and throughout the Middle East and ASEAN. I told you 2024 was a critical year and I'm proud of what we accomplished and how our businesses performed. We finished with a very strong Q4 which Mark will detail shortly.

full year, our net income was up nearly 40% to $12,700,000,000 We exceeded our full year revenue target with revenues up 5% ex divestitures. Fee revenue was up 17% and we saw a smaller impact from Argentina's currency devaluation. We delivered expenses within our guidance and improved our efficiency ratio by 3.40 bps whilst increasing investment in our transformation. Our RoTCE grew over 200 bps, albeit from a low level. Our 5 core businesses each generated positive operating leverage for the full year, which we also achieved at the firm level.

Services was up 9% and had another record year despite the low rate environment as a result of new mandates and our emphasis on fee growth. We grew share in both TTS and security services. Tapped by our best 4th quarter in a decade, markets was up 6%. The performance of this franchise in a low volatility year shows the benefit of our diversified product mix. Equities was strong throughout and was up 26% in what was a record year for us.

Banking was up 32% as we gained share across all three investment banking products and we announced an innovative $25,000,000,000 private credit partnership with our long term client Apollo. Under Visa's leadership, we expect to continue to gain on our competition in 2025 beyond. 2024 was the turning point for wealth as we sharpened our focus on investments, right sized the expense base and improved the client experience. Revenue was up 7% for the year including fee growth of 18%. Citigold in Asia were particularly strong and net new investment asset flows grew a very pleasing 40%.

We attracted top talent throughout the year in wealth, most recently bringing in Tate Moore as our CIO and Anne McCosker as our Head of Lending. This business has tremendous potential with both new and existing clients and we're really leaning into it. US PB revenues were up 6%, driven by borrowing across both card portfolios and by fee growth. We announced a 10 year extension of our co branded partnership with American Airlines ensuring that this valuable relationship enters into its 5th decade. With the acquisition of the Barclays portfolio, we will become American Airlines exclusive partner in 2026 and we expect to deliver more value for our cardholders and high returns for our shareholders as a result.

We grew our tangible book value per share by 4% and ended 2024 with a CET1 ratio of 13.6%, approximately 150 bps above our regulatory capital requirement. After repurchasing $1,000,000,000 in common shares during the Q4, we returned almost $7,000,000,000 in capital to our common shareholders in 2024. Given how committed we are to returning capital, I am particularly pleased to announce that our board authorized a $20,000,000,000 share repurchase program. You can see the very tangible progress we're making in executing the strategy that we laid out at our Investor Day 3 years ago. We have materially simplified our firm since then.

We exited consumer businesses in 9 countries and near completion of wind downs in 3 and are on track to exit the final 2. This includes Banamex, which we legally separated from our institutional business in December. We're now fully focused on getting ready to IPO with the timing heavily dependent on regulatory approvals and market conditions of course. To align our structure with our strategy, we went through a significant simplification of our organization, removing management layers and the regional construct. This has accelerated decision making and made us a better partner to our clients.

We have strengthened our culture by better aligning compensation with our shareholders' interests, enhancing our scorecards to ensure we're delivering for clients. We attracted top industry talent throughout our organization and that includes new leaders around my table for banking, wealth and technology. We have raised the bar on what we demand from each other and what we expect to deliver to our clients. We have continued to innovate to improve the client experience and our efficiency. We are now live with Citi Payments Express in 18 countries and have converted 4,000,000 retail bank customers to our simplified banking platform in the U.

S. We accelerated our use of AI arming 30,000 developers with tools to write code, launched 2 AI platforms to make 143,000 colleagues more efficient. The investments we're making to modernize our infrastructure, streamline processes and automate controls are changing how we run the bank. We consolidated our balance sheet reporting to 1 unified ledger. We implemented a cloud based solution for risk analytics to better value trading assets.

We have closed out 3 long standing consent orders. Our capital, liquidity and reserves are robust. Our focused strategy, infrastructure and targeted client selection have all reduced our risk profile significantly. We have made considerable progress on our transformation. While there are areas that are more advanced, there are others where we still have a lot more work to do, particularly around data and regulatory reporting as last summer's regulatory actions reinforced.

We have reviewed the entire data program and made changes to its governance and structure as well as increase the level of investment. As CEO, I want this company set up for long term success and to ensure that we have enough capacity to invest for that. In terms of expense guidance, therefore, most of the sales from the augmentation and stranded costs will be used to fund the additional investments we need to make this year in both transformation and technology. As a result, we expect our total expenses in 2025 to be slightly below the 2024 level and to deliver another year of positive operating leverage. We expect our elevated expense level to be temporary and for it to keep coming down beyond 2025.

However, when we take the required investments into account, we now expect our 2026 RoTCE to be between 10% and 11%. The 2026 RoTCE is a waypoint. It is not a destination. Our intention is to continue to improve returns well above that level and we are accountable for doing so. We are relentless in our determination to run the bank more efficiently, fulfill Citi's potential and meet the expectations of our shareholders.

Before I turn it over to Mark, I'd like to acknowledge the catastrophic wildfires in Los Angeles. Many of our clients and several of our colleagues have lost their homes and we will do whatever we can to help them recover from this devastating event. They and their loved ones are in all of our thoughts at Citi. Now over to Mark.

Thanks, Jane, and good morning, everyone. I'm going to start with the Q4 and full year financial results focusing on year over year comparisons unless I indicate otherwise. I'll also focus on our current expectations for 20252026. On Slide 7, we show financial results for the full firm, which reflect improved performance both in the quarter and the year. As a reminder, in the Q4 of last year, revenues were significantly impacted by Argentina currency devaluation.

Adjusted revenues and non interest revenues for the full firm and services are shown in the appendix of the earnings presentation on Slide 36. This quarter we reported net income of $2,900,000,000 EPS of $1.34 and an ROTCE of 6.1 percent on $19,600,000,000 of revenues generating positive operating leverage for the firm and in each of our businesses. Total revenues were up 12% driven by growth in each of our businesses and a smaller impact of Argentina currency devaluation. Net interest income excluding markets was roughly flat with growth in USPB and Wealth offset by declines in Corporate Other and Banking. Non interest revenues excluding markets was up 40% driven by continued strong fee momentum across services, banking and wealth along with lower partner payments in USPB as well as a smaller impact of Argentina currency devaluation.

And total markets revenues were up 36%. Expenses were $13,200,000,000 down 18%, largely driven by the absence of the FDIC special assessment and restructuring charge in the prior year. Excluding the impact of the FDIC special assessment and divestiture related impacts, expenses were down 7% driven by the absence of the restructuring charge in the prior year and savings associated with our organizational simplification partially offset by higher volume related expenses. Cost of credit was $2,600,000,000 largely consisting of cards, net credit losses and ACL bills. At the end of the quarter, we had over $22,000,000,000 in total reserves with a reserve to funded loan ratio of 2.7%.

And on a full year basis, we delivered $12,700,000,000 of net income with an ROTCE of 7%. On Slide 8, we show full year revenue trend by business from 2021 to 2024. This year we delivered $81,100,000,000 of revenue, up 5% on an ex divestiture basis driven by growth in each of our businesses and a smaller impact of Argentina currency devaluation. Services revenues increased 9% to $19,600,000,000 benefiting from a smaller impact of Argentina currency devaluation, fee growth and higher deposit volumes. Markets revenues increased 6% to $19,800,000,000 primarily driven by growth in equity which had its highest annual revenue in a decade and spread products.

Banking revenues increased 32 percent to $6,200,000,000 largely driven by growth in Investment Banking with fees up 42% as we gained approximately 50 basis points of share on an increased wallet. Wealth revenues increased 7 percent to $7,500,000,000 primarily driven by a 15% increase in non interest revenue as we continue to grow client investment assets. USPB revenues increased 6% to $20,400,000,000 driven by growth in cards as we continue to see strong customer engagement and an increase in interest earning balances as well as lower partner payments. Overall, this year demonstrates another year of performance consistent with our medium term target of 4% to 5% annual growth and the value of our diversified business model. On Slide 9, we show the full year expense trend from 2021 to 2024.

Excluding the impact of the FDIC special assessment, our full year expenses were $53,800,000,000 in line with our target. Expense reduction was driven by savings related to our organizational simplification and stranded cost reduction as well as lower restructuring and repositioning charges. Organizational simplification, stranded cost reduction as well as efforts to drive efficiencies across the businesses contributed to a net decline of roughly 10,000 direct staff. These savings were mostly offset by higher volume related expenses as well as investments in the transformation and other risk and controls and the civil money penalties. As you can see at the bottom of the page, we spent 2 $900,000,000 on transformation this year which includes investments in our infrastructure, platforms, applications and data.

Transformation investments were up 1% driven by an increase in certain programs including data largely offset by a reduction in the transformation bonus award. And we spent $11,800,000,000 on technology focused on digital innovation, new product development, client experience and other areas such as cybersecurity. Turning to Slide 10, we provide details on our $2,400,000,000,000 balance sheet which decreased 3% sequentially, largely driven by the impact of foreign exchange translation. In the Q4, we deployed some of our excess liquidity into loans while maintaining 116 percent LCR and $933,000,000,000 of available liquidity resources. Our $1,300,000,000,000 deposit base remains well diversified across regions, industries, customers and account types.

We maintained strong capital ending the year with a preliminary 13.6 percent CET1 capital ratio, approximately 150 basis points above our regulatory capital requirement of 12.1%. And for the year, we returned nearly $7,000,000,000 in the form of common dividends and repurchases to our shareholders. Turning to the businesses on Slide 11, we show the results for services for the Q4 full year. Services revenues were up 15% driven by a smaller impact of Argentina currency devaluation and reflecting continued momentum across security services and TTS both of which gained share this year. NIR increased 61 percent driven by a smaller impact of Argentina currency devaluation as well as continued strength in underlying fee drivers such as U.

S. Dollar clearing, commercial card spend, cross border transactions and assets under custody and administration. NII was roughly flat as the benefit of higher deposit volumes was offset by the impact of lower interest rates in Argentina. Expenses increased 1% driven by continued investment in technology and platform modernization, partially offset by productivity savings. Cost of credit was $112,000,000 with a net ACL build of $84,000,000 and net credit losses of $28,000,000 Average loans increased 5%, primarily driven by continued demand for export and agency finance as well as working capital loans.

Average deposits increased 4% as we continue to see growth in operating deposits. Services generated positive operating leverage and delivered net income of $1,900,000,000 $6,500,000,000 for the year and continues to deliver a high ROTCE coming in at 29.9% and 26% for the year. On Slide 12, we show the results for markets for the Q4 and full year. Markets saw its highest 4th quarter revenue in a decade and increased 36% with broad based gains across all products. Fixed income revenues increased 37% driven by rates in currencies which were up 39% and spread products and other fixed income up 30%, both reflecting increased client activity.

Rates and currencies also benefited from a conducive trading environment compared to a challenging prior year quarter. Spread products and other fixed income was driven by credit and mortgage trading as well as higher securitization volume. Equities revenues increased 34% driven in part by strong execution of strategic client transactions in cash equity and momentum also continued in prime with balances up approximately 23%. Expenses decreased 8% primarily driven by lower legal expenses and productivity savings. Cost of credit was $134,000,000 driven by a net ACL build primarily related to spread products.

Average loans increased 6% primarily driven by asset backed lending in spread products as well as margin loans in equities. Average trading account assets increased 15% largely driven by client demand for U. S. Treasuries and foreign government securities. Markets generated another quarter of positive operating leverage and delivered net income of $1,000,000,000 $4,900,000,000 for the year and delivered an ROTCE of 7.4% and 9.1% for the year.

On Slide 13, we show the results for Banking for the Q4 and full year. Banking revenues were up 27%, largely driven by Investment Banking with fees up 35% as we saw growth across all products. BCM was driven by continued investment grade issuance momentum and increased leverage finance activity. BCM saw strong issuance activity particularly in follow on and convertible instruments. In M and A, growth was driven by continued strong client engagement as well as the completion of previously announced acquisitions given the more conducive macro environment.

For the year, we gained share across regions, products and several sectors including healthcare and technology. Corporate lending revenues excluding mark to market on loan hedges decreased 24% driven by lower revenue share and volumes partially offset by a smaller impact of Argentina currency devaluation. Expenses decreased 9% primarily driven by benefits of headcount reduction as we right sized the workforce and expense base partially offset by higher volume related expenses. Cost of credit was a benefit of $240,000,000 driven by a net ACL release of $247,000,000 primarily driven by improved macroeconomic conditions. Banking generated positive operating leverage for the 4th quarter in a row and delivered net income of $356,000,000 $1,500,000,000 for the year and delivered an ROTCE of 6.5% 7% for the year.

On Slide 14, we show the results for Wealth for the Q4 and full year. As you can see from our performance this quarter, we're making good progress against our strategy and expect that momentum to continue. Revenues were up 20% driven by a 22% increase in NIR as we grew investment fees with client investment assets up 18% including net new investment assets of $16,000,000,000 NII increased 20% driven by higher average deposit spreads and volumes. Expenses decreased 3% driven by the continued benefit of headcount reductions as we right sized the workforce and expense base. End of period client balances increased 8% driven by higher client investment asset flows and market valuation.

Average deposits increased 3%, reflecting the transfer of relationships and the associated deposits from USPB, partially offset by a shift in deposits to higher yielding investments on Citi's platform. Average loans decreased 1% as we continue to optimize capital usage. Wealth generated a pre tax margin of 21% and another quarter of positive operating leverage, delivering net income of $334,000,000 $1,000,000,000 for the year and delivered an ROTCE of 10.1% and 7.6% for the year. On Slide 15, we show the results for U. S.

Personal Banking for the Q4 and full year. U. S. Personal Banking revenues were up 6% driven by NII growth of 5% and lower partner payments. Branded cards revenues increased 7% with interest earning balance growth of 7% as payment rates continue to normalize and we continue to see spend growth, which was up 5%.

Retail Services revenues increased 7% driven by lower partner payments and interest earning balance growth of 3%. And Retail Banking revenues were roughly flat as the impact of higher deposit spread was offset by the impact of the transfer of relationships and the associated deposits to our Wealth business. Expenses decreased 2% driven by continued productivity savings partially offset by higher volume related expenses. Cost of credit was $2,200,000,000 largely driven by net credit losses as well as a build primarily for volume growth. Average deposits decreased 18% largely driven by the transfer of relationships and the associated deposits to our wealth business.

USPV generated another quarter of positive operating leverage and delivered net income of $392,000,000 $1,400,000,000 for the year and delivered an ROTCE of 6.2% and 5.5% for the year. On Slide 16, we show results for all other on a managed basis which includes corporate other and legacy franchises and excludes divestiture related items. Revenues decreased 34% primarily driven by net investment securities losses as we reposition the portfolio, higher funding costs and closed exits and wind down. Expenses decreased 51%, primarily driven by the absence of the FDIC special assessment and restructuring charge in the prior year as well as the reduction from the closed exits in wind down. And cost of credit was $397,000,000 with net credit losses of $257,000,000 and a net ACL build of $140,000,000 primarily driven by Mexico.

Turning to Slide 18, where I will walk you through our current expectations for 2025. As a reminder, what underpins our current expectations is a reflection of a number of scenarios that include different macro and capital market environment. And based on what we know today, we expect revenues to be around 83.5 $1,000,000,000 to $84,500,000,000 a roughly 3% to 4% increase year over year. We expect a continuation of the NIRx markets momentum we saw this year driven by Investment Banking as we continue to gain share in the areas of strategic focus such as healthcare, technology as well as leverage finance and sponsors assuming a constructive industry wallet. Wealth supported by a continued focus on growth and client investment assets and banker productivity, which will drive investment revenue.

Services as we execute the strategy we laid out at our Investor Day in June, expanding our leadership position with large institutions and growing our market share with commercial clients in TTS. And in security services, continuing to gain share through investments in our digital and data capabilities while deepening with asset managers and asset owners. Turning to Slide 19, we expect NII ex markets to be up modestly this year. However, there are several tailwinds and headwinds that I will walk you through. Looking at the left hand side of the page, we expect most of the increase to come from volume growth and mix, primarily driven by higher loan volumes in USP B, mainly in cards and deposit volumes in services.

We expect the continued benefit from lower yielding investment securities rolling off and being repriced into higher yielding assets such as cash, loans and securities. Partially offsetting these tailwinds are several headwinds including various scenarios around lower rates both in U. S. And non U. S.

Which we expect to be mostly offset by repricing actions across the franchise as well as the potential impact of card late fee reduction and FX. Turning to Slide 20, we expect expenses to be slightly lower than $53,800,000,000 for 2025. Our expectations reflect continued benefits from our organizational simplification, reduction in stranded costs and productivity savings from our prior investments. However, offsetting most of these benefits are increased investments in the transformation, technology and the businesses as well as higher volume related expenses. Embedded in our outlook for the year is roughly $600,000,000 for repositioning, which remains elevated as we continue to reduce stranded costs, drive efficiencies across the businesses and as benefits from investments in transformation and technology allow us to eliminate manual processes.

As Jane said, we recognize that our expense base remains elevated and we remain very focused on bringing down our expenses each year while ensuring that we have enough capacity to invest in the company. Now turning to Slide 21, I'll talk you through our expectations for returns going forward. As we enter 2025 and think forward to 2026, we continue to have a clear path to improve returns. Having gone through another robust planning process and having provided revenue and expense targets for 2025, we want to update you on our 2026 ROTCE target range. In 2026, we expect continued revenue growth from both NII and NIR with drivers largely consistent with recent performance.

We expect expenses to decline from 2025 and are targeting an expense level below $53,000,000,000 The reduction in our expense base will come from a decrease in legacy and stranded costs, a more normalized level of severance and an increase in productivity savings from our prior investments. We will maintain strict discipline on the entire expense base looking for more opportunities to drive further efficiencies as we go into 2026. We also remain laser focused on continuing to optimize RWA, but as you know, the future of capital rules and therefore requirements remain uncertain. In light of all of this, we are now targeting an ROTCE in the range of 10% to 11% in 2026. We're committed to driving positive operating leverage and improving our returns every year for both the firm and the businesses and we will do so in a sustainable way which will set this company up for long term success.

With that in mind, as part of the $20,000,000,000 share repurchase program, we plan on buying back $1,500,000,000 of common stock in the Q1. As we take a step back, 2024 represents another year of solid progress and a set of proof points towards improving firm wide and business performance as well as continued execution against our transformation. And as we enter 2025, these priorities remain critical as we continue to make progress on improving our returns. With that, Jane and I will be happy to take your questions.

Our first question will come from Jim Mitchell with Seaport Global. Your line is now open. Please go ahead.

I think as Jane noted, it seems like a material driver of the reduction in the RCC target in 'twenty six is expenses. I think you kind of backed off the lower end of that given higher investments in the transformation, but also talked about it being somewhat temporary. So when we think about and we appreciate the below 53 for 26, but how much more is there to go beyond that in terms of eliminating parallel running parallel systems, reduce consultant spend and all that stuff? Is there still that path to a 60% or lower efficiency ratio? Thanks.

Well, Happy New Year, Jim. I know you want to talk about the guidance, so let me put it into context here. Last year, you've heard me be very clear about our 2 priorities. First one is driving the business performance and the second is executing the transformation. You've seen this quarter, you've seen last quarter, you've seen the full year, our businesses are delivering the progress we wanted them to.

The strategy is working. We've changed the business mix. We're generating more fee based revenues. You see that in Services with NIR up 37% this year, Wealth NIR up 15%, IB fees up 35%, an important part of the mix around the quality of our earnings. We said services is a crown jewel.

It's delivered growth, high returns, it's taken share. It's a crown jewel. We made a strategic plan in Wealth and you've seen us very steadily prove out why we can be a force globally with a clear path to delivering the financial performance that we said we would do. We've consistently delivered on our revenue and expense targets. And I see a lot more opportunity and more upside to strengthen our business performance.

We're very tangibly getting after it. We're pretty excited by it. The second priority, transformation. I got to tell you, I'm broadly pleased with the progress we've made in risk and compliance and accountability, kind of excited by the work we've got going on in controls for the business as well at the moment. We've been very transparent.

Data was an area we have more work to do in. We increased our investments last year, as you know. And then as part of the annual planning process, we took a big step back to reassess our plan. And I decided, along with Mark and the management team, we needed to expand the scope and accelerate some of the work to satisfy our regulators' expectations. I'm confident that the decision to do that, it was the right one.

It's the right one for our transformation efforts. It's certainly the right one for the firm overall. I could have taken a short term decision to cut other investments that are important for our long term investment and competitiveness. I'm just not going to do that. You shouldn't want me to do that.

And as I said in the opening comments, this 'twenty six target is a waypoint, not the final destination.

I just want to address the second part of your question, Jim, in terms of the path to less than 60%. I think, James framed it out quite nicely in that we're building a franchise that will have continued and sustainable top line revenue momentum. We are focused on driving out the inefficiencies and stranded cost and legacy franchise expenses from the organization. And the benefits from these investments we've made in the transformation will yield a lower cost structure over time as well. And so the combination of those things will get us to that targeted operating efficiency as we come out of 2026 at less than 60%.

So yes, there is still a path and we are focused on that path.

Okay, great. That's very helpful. And then just maybe pivoting to the buyback rate to see the $20,000,000,000 authorization. Obviously, can't help but ask about beyond 1Q. If we do sort of get this more certainty, maybe no increase in capital requirements, does that start to help you maybe at least temporarily lower the buffer to take advantage of your trading both tangible book getting the accretion and accelerating the buyback?

Or how do you think about the rest of the year on the buybacks?

Look, I'll make a couple of comments. So one, we're very pleased to have announced the buyback program at $20,000,000,000 I think in many ways that is a demonstration if you will of continued confidence in the earnings generation and momentum that we have around that as well as the recognition that we are trading below book and not where we want to be. And you've heard both Jane and I speak to the importance of increasing and doing more in the way of buybacks. We've increased that to $1,500,000,000 I think that supports that same degree of confidence that we have in the momentum. We are constantly looking at every year on an annual basis as we go through our planning process at the management buffer that we have of 100 basis points.

And despite the last couple of quarters at running above the 13.1%, our target is the 13.1. And so as we get as we go through the balance of the year as we get clarity on reg rules and what have you, you'll see us continue to manage down to that 13.1 percent. And obviously the 2 important characteristics that we keep or drivers that we keep in mind is the opportunity to invest more in the business at accretive returns and where we're trading and the need to do more buybacks in order to reflect the underlying value. So targets 13.1, we continue to look at that management buffer as the regulatory environment evolves and we'll continue to do more in the way of capital actions as that makes sense.

Our next question comes from the line of John McDonald with Truist Securities. Your line is now open. Please go ahead.

Thank you. Mark, just wanted to follow-up on your answer to Jim right there. So when you look at the 10 to 11 ROTCE target for 2026, is that kind of assuming you'll be around the target or like using the 13.1 as the target? And then longer term you hope to bring that target down as rules get clarified and the franchise gets simplified?

Hey John, good to hear from you. In fact, yes, the 10% to 11% ROTCE target we've set for 26% does assume that we are running and using a 13.1 CET1 ratio. Obviously, there'll be an SCB that comes out sometime later this year. The rules are continuing to evolve and what have you and we'll factor those in as we know more about them. But yes, it does assume the 13.1 which is our management target if you will for CET1.

Okay, great. And then my next question is could you clarify what you're expecting this year for card net charge offs? Understand the quarterly cadence has seasonality, but for the full year, it sounds like you're expecting the charge offs to be in the range of last year's guidance. Can you just kind of clarify that? And then maybe just talk about provision build, which you had a lot of in 2020 24 and whether that could slow down as the maturation of balances slows down?

Sure. So in terms of the net credit losses in the forecast that we have, we are expecting that the net credit losses will be at the high end of the range that we've given. So in the case of branded cards that 3.5% to 4% is the full year range that we've given. In the case of retail services, it's 5.75% to 6.25%, excuse me. And so right now retail services is at that high end at 6 $28,000,000 for 2024.

We'd expect it to stay at that high end. Although I'm sorry. And then on branded cards, we're at $364,000,000 We'd expect it to creep up to about the 4% level over the course of the year. But remember, that is a full year NCL rate and we know that there's seasonality through the quarters. And so you'll see movement through the quarters based on that dynamic.

And then just in terms of the provision build, there are a couple of drivers there. One is obviously volume and we do expect to see volume growth in USP B. So that will be an important factor in how the CECL calculations are done. And then the second driver is obviously as you know we run models and the models have a they have a base scenario, they have a downside and upside scenario depending on the broader macro factors, unemployment, GDP, etcetera, etcetera, and are waiting towards the likelihood of high or upside or downside scenario. Those factors become important considerations in the provisioning.

And so that's kind of how we think about that going into 2025. I hope that helps.

Our next question will come from Mike Mayo with Wells Fargo. Your line is now open. Please go ahead.

Hi. Just a clarification. So you are guiding for 3 consecutive years of lower expenses, including that $600,000,000 repositioning this year. So they were down in $24,000,000 you're guiding them lower in $25,000,000 and you guide them lower in 20 26,000,000 again. And you're also guiding for 3 consecutive years of higher revenues based on what you said.

I didn't see that in the written materials, but I think I heard you say that, Mark. So 3 years of lower expenses, 3 years of higher revenues through at least 26, is that correct?

No, I mean, I think you described it correctly, like we're seeing continued momentum on the top line and we're focused on continuing to bring our expenses down just as we did in 2024, a tad bit in 2025 and then more in 2016.

All right. Then I guess this is for Jane. Well that beats haggis on toast if you achieve that. But I'm wondering why that efficiency might not improve even more. I mean, if you have $5,000,000,000 of stranded costs and transformation costs in 2024 and some of that goes down.

I heard you're investing in tech and transformation and volume and the businesses and there's always a trade off between the bottom line results you show today and the growth you show in the future. And it seems like going to get this done, the lower expenses, why you're leaning into a little bit extra growth. So talk about that trade off and where you're leaning in for growth a little bit more.

First of all, I'm a little disturbed by your comment about haggis on toast. It's haggis with mashed potatoes and whiskey, just to be clear

It's Robert Burns Night coming up soon. On expenses, Mike and everyone, expenses are a focus not just for Mark and I, but for the entire management team. We're making sure that focus and discipline is really getting installed and instilled into the DNA of Citi. And you've seen that as you referenced. We've been meeting our expense guidance over the last couple of years.

We've been driving positive operating efficiency. We're all very focused on improving our operating expense base. Consolidating technology, the simplification work, automation, getting different utilities put in place rather than fragmented around the firm using AI tools now, our location strategy, right. So that core operating expense base is something that we're really looking at how do we drive to be more efficient, more modern and getting it to the level it should be for the revenues that we generate. We all want transformation to get done quickly and we want it to get done right.

So that is why our expenses are temporarily elevated to make the investments that are needed there. This is not all run rate. And as you say, as CEO, I will not sacrifice the right long term investments in our growth and competitiveness for short term expediency. This is a waypoint. It's not a destination.

And we know what we need to do. We've got our arms around all of this. We're just getting on with execution.

Our next question will come from the line of Betsy Graseck with Morgan Stanley. Your line is now open. Please go ahead.

Hi, good morning. Jane, just to follow-up on what you mentioned, as you do execute, we all expect or at least I do that the market will be giving you credit for that execution and meaning multiple should increase. So I'm a little bit I have a few questions here on the buyback, because right now today as we all know you're trading below book. It has got to be buying back stock has got to be the most accretive use of capital today. And why wait on the buyback when you can lean into it today and keep your 2026 guide.

I mean, the old guide was 11% to 12%, ROTCE new guide 10% to 11 percent. I'm kind of confused why you don't pull that lever more aggressively because buying back the stock, the accretion to tangible book, it's got to be the easiest thing to do to help that ROTCE go up when you compare and contrast against all the hard work you've been doing, which will obviously be very important to getting the RASI up. But why not lean more into that buyback? And can you give us a sense of the timing of that $20,000,000,000 Thank you.

Yeah, Betsy, I love the passion. I've got to say, I can hear the determination in your voice. I think it's the same determination we feel. Look, we're very committed to returning capital to shareholders, period or full stop. We bought a $20,000,000,000 buyback program, as Mark said, that is reflective of the growing earnings power that we have and our confidence in the path ahead.

We've been increasing the amount of capital turn over the last few quarters. And we I'm also happy to see a more aggressive Basel III scenario firmly off the table. We have nonetheless a 13.1 CET ratio that we put in the plan. That can change over time as well. But there's not complete certainty around where the capital requirements are going to go.

We hope there will be a holistic one that is reflective of the risk profile of the bank that's been improving significantly over the last few years. So we clients who want to do business with us in banking. We've got a great runway with our clients who want to do business with us in banking. We've got some very important investments and investment agenda that we're putting in to help us continue growing the bank, gaining competitiveness in a responsible way. I'll just conclude with exactly your point.

The bar is high on those investments, right? We don't make them unless we extremely attractive marginal ROTCE and there's a lot of things we say no to in order to put the $20,000,000,000 program in place. In terms of timing, like our peers, we're not committing to a particular time frame from this, but you can see our commitment. You can hear our commitment.

Citigroup (C) Q4 2024 Earnings Call Transcript

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