Shares of Citigroup (C) are rising in pre-market trading after the banking giant beat fourth quarter expectations. Adjusted earnings per share (EPS) of $1.81 rose 35% year-over-year and beat the consensus estimate of $1.65. Also, adjusted revenues of $21 billion surpassed the consensus of $20.94 billion.
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For fiscal 2025, revenues rose 7% to $86.4 billion and adjusted EPS of $7.97 came in significantly higher than the FY24 figure of $5.94.
Details of Q4 and FY25 Results
Citi’s quarterly revenues rose 2% year-over-year on a reported basis, led by growth in Banking, Services, U.S. Personal Banking (USPB), and Wealth, with gains mostly offset by weakness in All Other. Excluding the Russia-related notable item, revenues increased by 8%.
Citi had previously disclosed that Q4 results included a notable item of a $1.2 billion pre-tax loss ($1.1 billion after tax) on the planned sale of AO Citibank in Russia. This stemmed from held-for-sale accounting treatment and was recorded in Other revenues.
The bank returned more than $17 billion in capital to shareholders, the highest amount since the pandemic, including $13 billion via share buybacks.
Citi pays a regular quarterly dividend of $0.60 per share, reflecting a current yield of 1.94%.
Is Citigroup Stock a Buy?
Ahead of the Q4 print, analysts remained highly optimistic about Citigroup’s long-term prospects. On TipRanks, Citi has a Strong Buy consensus rating based on 13 Buys and three Hold ratings. The average Citigroup price target of $125.50 implies 7.9% upside potential from current levels. Over the past year, C shares have gained 58.2%.
