Citigroup Inc

Strong Financial Performance: Citi reported a net income of $12.7 billion for 2024, up nearly 40% year-over-year, with revenues increasing by 5% excluding divestitures. Key growth areas included services (up 9%) and equity markets (up 26%), demonstrating the firm’s ability to generate positive operating leverage across all five core businesses.

Adjusted Return on Tangible Common Equity (RoTCE) Target: The management has adjusted its 2026 RoTCE target to a range of 10% to 11%, down from previous guidance, citing the need for higher investments in transformation and technology, as well as a more cautious approach to capital requirements. This target reflects continued recovery while suggesting potential long-term growth challenges.

Cost Management and Expense Outlook: Citi plans to lower total expenses slightly from $53.8 billion in 2024, focusing on eliminating stranded costs and improving operational efficiency. However, investments in transformation—projected at $600 million—will temper cost reduction efforts, indicating ongoing elevated expenses in the near term, which may hinder efficiency improvements.