Estated Blog

Browse by topic:

More from Estated

Citigroup Q1 Earnings Call Breakdown

On the 15th of January, 2021, Citigroup Inc. reported its net earnings for the fourth quarter of 2020 worth $4.6 billion. The earnings per share of $2.08 declined by 3% from the previous year, mainly reflecting the decrease in total earnings.

The net revenue of $16.5 billion has also reduced by 10% of the prior year's $18.4 billion revenue. The 7% decrease of net quarter income compared to Q4 2019 is influenced by a rising effective tax rate, higher expenditure, reduced revenue, and partly counterbalanced by lower credit costs.

Looking into the full year, Citigroup recorded net earnings of $11.4 billion, on revenue of $74.3 billion. It is in contrast to the net earnings of $19.4 billion, and on revenue of $74.3 billion for the full year 2019. Citigroup's CET 1 ratio, at the end of the fourth quarter, has increased to 11.8% from the prior quarter. The book value of $86.59 EPS and the tangible book value of $73.83 EPS rose 4% and 5%, respectively. The Statutory Liquidity Ratio (SLR) of Citi was 7%, which is also an improvement from the third quarter of 2020. Citigroup distributed a sum of $1.1 billion to common shareholders in dividends during the segment.

Founded in 1998, Citigroup was created by the fusion of Citicorp's banking and financial powerhouses, Travelers Group. Its headquarter is in NewYork City, listed on NewYork Stock Exchange, with a $120 billion market capitalization. Citi ranks as the third-largest banking institution in the United States, one of the nine central investment banks in the Bulge Bracket, and is graded 30th rank on the Fortune 500 in the year 2019.

This financial service provider has more than 200 million client accounts and operates in more than 160 nations. Citi's Institutional Clients Group (ICG) provides ultra-high-net-worth investors, corporations, businesses, and governments with financial and corporate banking products and services. It has five major segments, i.e., Treasury and Trade Solutions, Citi Private Bank, Markets & Securities, Capital Markets, and Corporate & Investment Banking.

Citi's Global Consumer Banking revenues of $7.3 billion were reduced by 14% on a recorded basis and 13% in constant dollars. Its International Clients Group fell by 1% to $9.3 billion, indicating lower revenues in Corporate Lending, Investment Banking, and Treasury and Trade Solutions, and, almost covered by strength in Private Banks, Equity Markets, and Fixed Income Markets. Furthermore, the corporate and other revenues were $85 million, in contrast to $542 million, of the previous year.

Citigroup is very proud of its performance in Q4, 2020, and hopes to do great things this year by fulfilling its client needs through the digital services.