Citigroup Q1 Net Income Declines; Issues FY24 Revenue Guidance

(RTTNews) - Citigroup Inc. (C) reported first quarter net income of $3.4 billion, down 27% from a year ago as lower non-interest revenue, as well as higher expenses and cost of credit, more than offset higher net interest income. Earnings per share was $1.58, a decline of 28%. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $1.11, for the quarter. Analysts' estimates typically exclude special items.

First quarter revenues declined 2% year-over-year to $21.10 billion. Analysts on average had estimated $18.78 billion in revenue. Excluding divestiture-related impacts of $1 billion, primarily consisting of the gain from the sale of the India consumer business in the prior-year quarter, revenues increased more than 3%, driven by growth across Banking, USPB and Services, partially offset by lower revenues in Markets and Wealth. Net interest income was $13.51 billion, up 1%.

For the first quarter, expenses were up 7% from a year ago. In the quarter, the company took an additional $225 million of restructuring charges, largely related to the organizational simplification, totaling approximately $1 billion across the last two quarters. Citigroup said these actions are driving a headcount reduction of approximately 7,000 and approximately $1.5 billion of annualized run rate saves over the medium-term.

For fiscal 2024, the company targets revenues in a range of approximately $80 billion - $81 billion. Analysts expect the company to report revenue of $73.69 billion. Full year expenses are projected in a range of approximately $53.5 billion - $53.8 billion excluding FDIC special assessment.

Shares of Citigroup are up 1% in pre-market trade on Friday.

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