Citigroup, one of the largest financial institutions in the United States, reported its fourth-quarter earnings for 2024, revealing both challenges and adjustments in its profit expectations. The bank’s latest earnings report detailed a profit of $3.1 billion, or $1.45 per share, which surpassed analyst expectations of $1.38 per share. Despite this positive surprise, CEO Jane Fraser announced a rollback of the bank’s profit target as part of a larger restructuring plan aimed at revitalizing the company’s focus on its core businesses.
In her statement, Fraser emphasized, “While we have made progress in the last quarter towards simplifying our organization and enhancing performance, a more sustainable growth trajectory requires a reassessment of our previous ambitious profit targets.” The bank is pivoting its strategy following the challenges faced in various global markets and internal operational hurdles.
For the year 2024, Citigroup’s revenues increased slightly to $18.8 billion, but the bank has faced persistent headwinds, including high inflation and rising interest rates, which continue to impact the financial services sector greatly. Additionally, institutional clients have shown increasing caution amid ongoing geopolitical tensions.
Fraser’s restructuring plan aims to shift more resources towards technology investment and digital solutions, which she described as essential for the future. “Investing in our technology is crucial to stay competitive and meet the evolving needs of our clients,” Fraser stated.
Despite the positive earnings news, Citigroup’s shares saw a slight decline following the announcement of revised profit goals, reflecting investor concerns about the bank’s longer-term profitability strategy. Analysts have indicated the need for continuous monitoring of the bank’s restructuring progress and the effectiveness of leadership under Fraser. Overall, the financial community remains cautious but hopeful for Citigroup’s renewed strategic focus.
