Citigroup reported a significant turnaround in its fourth-quarter performance, marking a net income of $2.86 billion, a substantial recovery from a net loss of $1.84 billion in the same period last year. The banking giant's resurgence under the leadership of CEO Jane Fraser, who took the helm in March 2021, has caught the attention of investors keen on progress updates regarding her strategic turnaround efforts. Shares of Citigroup rose more than 2% in premarket trading, reflecting investor confidence in the company's direction.
Banking revenue at Citigroup grew by an impressive 12%, bolstered by the impact of loan hedges that expanded banking revenue to a remarkable 27%. Additionally, markets revenue experienced a robust 36% year-over-year increase, with both fixed income and equity businesses contributing to this growth. The wealth and services units also saw substantial revenue climbs of 20% and 15% year-over-year, respectively.
Citigroup's performance metrics are particularly noteworthy as they occur amidst Fraser's strategic initiatives to streamline the company. Her focus has included selling off select international units to concentrate on core operations. Despite these changes, Citigroup's stock has performed admirably, rising more than 4% so far this year and nearly 37% throughout 2024.
However, year-over-year comparisons for the fourth-quarter income metrics are complicated by charges that Citigroup booked in the final period of 2023. This complexity adds another layer to the challenges faced by Fraser and her team as they work to maintain the momentum of Citigroup’s financial recovery.