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Citigroup Reports Strong Q4 Results, Shares Rise

Citigroup Inc. (C) has announced fourth-quarter financial results that have surpassed market expectations, leading to a sharp increase in its stock price during pre-market trading on Wednesday.

For the fourth quarter, Citigroup reported a net income of $2.86 billion, a significant turnaround from a loss of $1.84 billion in the same period last year. The bank’s diluted earnings per share (EPS) also saw a notable increase, climbing to $1.34 from a loss of $1.16, and beating the consensus estimates gathered by Visible Alpha.

The rise in revenue was equally impressive, as the bank’s income, excluding interest expenses, grew by 12% year-over-year to reach $19.58 billion, exceeding analyst predictions. Additionally, Citigroup reported a reduction in its cost of credit, which dropped by 27% to $2.59 billion compared to the previous year—an improvement the bank credits for contributing to its enhanced net income.

In a statement, CEO Jane Fraser emphasized the significance of 2024 for the bank, highlighting that the positive results indicate that their strategic initiatives are generating the intended outcomes and fostering a robust performance across various business sectors.

Moreover, Citigroup’s board has approved a substantial stock buyback program worth $20 billion, slated to commence this quarter. This decision is poised to further bolster investor confidence in the bank’s ongoing recovery and strategic direction.

Following the announcement of these results, Citi’s shares experienced an almost 4% increase in pre-market trading on Wednesday, reflecting positive market sentiment and investor anticipation of the bank’s future performance.

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