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Citigroup (C)
NYSE:C
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Citigroup (C) AI Stock Analysis

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C

Citigroup

(NYSE:C)

Rating:73Outperform
Price Target:
$101.00
â–²(9.01%Upside)
Citigroup's overall score is driven by strong earnings performance and strategic capital returns, moderated by high debt levels and liquidity concerns. Technical indicators support a positive momentum, while valuation metrics indicate fair pricing. Corporate events further reinforce a robust capital strategy.
Positive Factors
Profitability Outlook
Management actions under CEO Jane Fraser are making Citigroup competitive and putting the bank on a path to sustained 10%+ returns, indicating a positive profitability outlook.
Share Buybacks
Share buybacks are likely to increase sharply, given excess capital.
Negative Factors
Non-performing Loans
Non-performing loans rose sharply, led by C&I loans in Markets and wealth management loans.
Wealth Segment
Core trends in the Wealth segment were tepid with a very sharp slowdown in net new assets invested.

Citigroup (C) vs. SPDR S&P 500 ETF (SPY)

Citigroup Business Overview & Revenue Model

Company DescriptionCitigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.
How the Company Makes MoneyCitigroup generates revenue through a diverse range of financial services and products offered under its Global Consumer Banking and Institutional Clients Group segments. In the GCB segment, the company earns income from retail banking services such as deposits, loans, and mortgages, as well as credit card services where it charges interest and fees. The ICG segment generates revenue from investment banking activities, including advisory and underwriting services, trading and securities services, and lending to institutional clients. Additionally, Citigroup earns fees from asset management and private banking services. The company's global presence and extensive client network are significant factors contributing to its revenue generation capabilities. Citigroup's strategic partnerships and digital banking initiatives also play a crucial role in enhancing its service offerings and expanding its customer base.

Citigroup Key Performance Indicators (KPIs)

Any
Any
Institutional Revenue Breakdown
Institutional Revenue Breakdown
Details revenue from institutional clients, highlighting Citigroup's performance in investment banking, trading, and other financial services for large organizations.
Chart InsightsCitigroup's Institutional Revenue shows robust growth in Treasury and Trade Solutions, with a notable surge in Securities Services in 2024. Fixed Income Markets remain volatile, while Equity Markets and Investment Banking are recovering, aligning with a 23% increase in equities revenue reported in the earnings call. Despite challenges in non-interest revenue, the bank's strategic focus on transformation and AI investments, coupled with strong capital returns, provides a positive outlook amidst macroeconomic uncertainties.
Data provided by:Main Street Data

Citigroup Earnings Call Summary

Earnings Call Date:Jul 15, 2025
(Q2-2025)
|
% Change Since: 5.89%|
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Positive
Citi demonstrated robust performance with significant revenue and net income growth, particularly in the Markets, Banking, and Services segments. The company effectively returned capital to shareholders and maintained a strong outlook for the year. However, challenges in Retail Services and slowed inflows in Wealth, coupled with high transformation expenses, present areas of concern.
Q2-2025 Updates
Positive Updates
Strong Revenue and Net Income Growth
Citi reported a net income of $4 billion and earnings per share of $1.96, with revenues up 8% year-over-year. Three out of five businesses achieved record second quarter revenues.
Record Performance in Markets and Banking
Markets revenues increased by 16%, and Banking revenues were up 18%, with Citi involved in significant transactions such as advising Boeing and Nippon Steel.
Services Segment Excellence
The Services segment delivered a 23% ROTCE, with revenues up 8% and significant growth in loans and deposits.
Wealth Management Growth
Wealth revenues increased by 20%, with a pretax margin of 29% and noninterest revenue up 17%.
Successful Capital Return to Shareholders
Citi returned over $3 billion in capital to shareholders, including $2 billion in share repurchases, and announced an increased dividend of $0.60 per share.
Positive Outlook for Full Year 2025
Citi expects to be at the higher end of its full-year revenue range, around $84 billion, with continued share repurchases.
Negative Updates
Challenges in Retail Services
Retail services revenues declined by 5%, largely due to higher partner payments and lower net credit loss.
Slowdown in Wealth Asset Inflows
Despite 9% organic growth in net new investment assets over the last year, inflows slowed this quarter due to client caution amid macro uncertainty.
Increased Transformation Expenses
Citi's transformation expenses are expected to remain high for 2025, although they are planned to decrease in 2026.
Company Guidance
During Citi's 2025 Q2 earnings call, several key metrics were highlighted, indicating strong performance and strategic progress. Citi reported a net income of $4 billion and earnings per share of $1.96, achieving an ROTCE of 8.7%. Revenues increased by 8%, supported by significant growth in three out of five business units. The Services division, described as Citi's "crown jewel," achieved a 23% ROTCE with robust growth in loans and deposits, while Markets revenues surged by 16%, marking the best second quarter since 2020. Banking revenues rose by 18%, driven by major advisory roles in significant transactions, including Boeing's $11 billion sale and Nippon Steel's $15 billion acquisition. Wealth management delivered a 29% pretax margin with revenues up 20%, despite cautious client behavior amidst macroeconomic uncertainties. The US Personal Banking sector saw a 6% revenue increase, bolstered by branded cards growth, although retail services faced pressure from lower sales activity. Citi also returned over $3 billion in capital to shareholders, including $2 billion in share repurchases, and expects to increase dividends to $0.60 per share in the third quarter. Looking forward, Citi raised its full-year revenue guidance to the high end of around $84 billion, with net interest income expected to rise by approximately 4%. The bank remains committed to a $20 billion share repurchase program and anticipates repurchasing at least $4 billion in the upcoming quarter.

Citigroup Financial Statement Overview

Summary
Citigroup demonstrates strong revenue growth and profitability with a high gross profit margin and net income growth. However, the high debt-to-equity ratio and negative cash flow indicate significant leverage and liquidity challenges.
Income Statement
78
Positive
Citigroup's TTM (Trailing-Twelve-Months) income statement reflects strong profitability with a high gross profit margin of 77.1% and a solid net profit margin of 13.6%. Revenue growth over recent years shows a positive trend with a 38% increase in TTM revenue compared to the previous annual period. However, the EBIT margin has seen some fluctuation, indicating potential volatility in operational efficiency.
Balance Sheet
65
Positive
Citigroup's balance sheet shows a high debt-to-equity ratio of 3.52, which suggests significant leverage. The equity ratio is relatively low at 8.3%, indicating a heavy reliance on debt financing. Despite this, the return on equity of 6.3% is moderate, suggesting adequate profitability relative to equity. The high level of cash and short-term investments provides a buffer against potential financial instability.
Cash Flow
55
Neutral
The cash flow statement reveals challenges with negative free cash flow and operating cash flow, indicating potential liquidity issues. The free cash flow to net income ratio is negative, highlighting a disconnect between profitability and cash generation. Citigroup's operating cash flow to net income ratio is also negative, which may signal inefficiencies in converting revenue into cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue170.71B155.38B100.22B79.87B88.83B
Gross Profit71.12B67.90B69.37B75.78B58.12B
EBITDA21.36B17.47B23.07B31.43B17.57B
Net Income12.68B9.23B14.85B21.95B11.05B
Balance Sheet
Total Assets2.35T2.41T2.42T2.29T2.26T
Cash, Cash Equivalents and Short-Term Investments498.02B506.00B580.77B541.33B638.78B
Total Debt590.56B602.18B521.15B473.63B500.73B
Total Liabilities2.14T2.21T2.21T2.09T2.06T
Stockholders Equity208.60B205.45B201.19B201.97B199.44B
Cash Flow
Free Cash Flow-26.17B-80.00B19.44B42.97B-26.93B
Operating Cash Flow-19.67B-73.42B25.07B47.09B-23.49B
Investing Cash Flow86.25B-8.46B-79.45B-110.75B-92.44B
Financing Cash Flow-38.30B687.00M137.76B17.27B233.59B

Citigroup Technical Analysis

Technical Analysis Sentiment
Positive
Last Price92.65
Price Trends
50DMA
80.36
Positive
100DMA
74.29
Positive
200DMA
72.38
Positive
Market Momentum
MACD
3.64
Negative
RSI
74.26
Negative
STOCH
92.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For C, the sentiment is Positive. The current price of 92.65 is above the 20-day moving average (MA) of 86.95, above the 50-day MA of 80.36, and above the 200-day MA of 72.38, indicating a bullish trend. The MACD of 3.64 indicates Negative momentum. The RSI at 74.26 is Negative, neither overbought nor oversold. The STOCH value of 92.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for C.

Citigroup Risk Analysis

Citigroup disclosed 27 risk factors in its most recent earnings report. Citigroup reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Citigroup Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$219.26B11.6010.83%7.59%-1.91%-6.79%
WFWFC
78
Outperform
$262.42B13.8211.51%1.99%0.22%19.89%
76
Outperform
$150.87B12.669.18%2.64%5.39%20.82%
JPJPM
74
Outperform
$809.47B14.9416.13%2.22%4.04%8.73%
CC
73
Outperform
$174.54B13.826.64%2.42%0.52%89.25%
BABAC
73
Outperform
$356.41B13.879.46%2.70%3.21%20.49%
68
Neutral
$16.89B11.699.78%3.90%11.76%-7.55%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
C
Citigroup
92.65
30.11
48.15%
BAC
Bank of America
47.48
6.08
14.69%
HSBC
HSBC Holdings
63.60
22.95
56.46%
JPM
JPMorgan Chase
290.97
85.26
41.45%
MUFG
Mitsubishi UFJ
13.45
2.37
21.39%
WFC
Wells Fargo
80.28
22.01
37.77%

Citigroup Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Citigroup Completes 2025 Stress Test, Plans Dividend Increase
Positive
Jul 2, 2025

On July 1, 2025, Citigroup announced the completion of the Federal Reserve Board’s 2025 annual supervisory stress test, resulting in a reduced Stress Capital Buffer requirement of 3.6% and a preliminary Standardized Common Equity Tier 1 capital ratio requirement of 11.6%. As of March 31, 2025, Citi’s CET1 capital ratio stood at 13.4%, exceeding the regulatory requirement. Citi plans to increase its quarterly common stock dividend and continues its $20 billion share repurchase program, having repurchased $3.75 billion year-to-date. These actions reflect Citi’s strong capital position and strategic focus on returning capital to shareholders.

The most recent analyst rating on (C) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Citigroup Appoints Jonathan Moulds as Independent Director
Positive
Jun 18, 2025

On June 16, 2025, Citigroup‘s Board of Directors elected Jonathan Moulds as an independent director, appointing him to the Risk Management and Transformation Oversight Committees. Moulds, who has a distinguished career in financial services, including roles at Bank of America and Barclays, is expected to enhance Citi’s board with his expertise in global markets and operational efficiency. His appointment is seen as a strategic move to strengthen Citi’s governance and oversight, potentially impacting the company’s operations and industry positioning positively.

The most recent analyst rating on (C) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Citigroup Stockholders Approve Key Amendments at Annual Meeting
Neutral
May 1, 2025

On April 29, 2025, Citigroup Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders approved an amendment to the Citigroup 2019 Stock Incentive Plan, increasing the authorized shares by 30 million. Additionally, 12 directors were elected, KPMG LLP was ratified as the independent accounting firm for 2025, and the 2024 Executive Compensation was approved. However, several stockholder proposals, including those on golden parachutes, Indigenous Peoples’ rights, climate change, and animal welfare, were not approved.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025