Citigroup Inc (NYSE:C) shares jumped 7.3% in trading on Wednesday as it turned in earnings that beat expectations and unveiled plans for a new $20 billion share buyback.
Fourth-quarter earnings for third-largest US bank by assets of $1.34 a share compared to a charges-hit loss of $1.16 a year ago and a Wall Street consensus forecast of $1.22.
Net income was up nearly 40% to $12.7 billion, driven by the higher revenues, lower expenses and lower cost of credit.
Revenues of $19.58 billion were up from $17.4 billion a year earlier and were a small beat versus the average analyst estimate of $19.50 billion.
The fixed-income, currencies and commodities (FICC) sales & trading arm contributed to the beat, with revenues of $3.48 billion that beat the Street's $2.94 billion estimate.
After generating total revenues of $81.1 billion last year, for 2025 Citi said it currently expects revenues to rise to between $83.5 billion and $84.5B billion, above the current consensus forecast of $83.2 billion.
"2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses," said CEO Jane Fraser, hailing record years in services, wealth and US personal banking businesses.
"We delivered expenses within our guidance and improved our efficiency ratio while concluding a significant reorganization of our firm."
Following the near-$7 billion of capital returned in the past year, she said the board has the new $20 billion buyback as Citi "entered 2025 with momentum across our businesses and we continue to strengthen our ability to serve our clients".