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1. Company Snapshot

1.a. Company Description

Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa.The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG).The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services.


It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems.The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients.As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia.


Citigroup Inc.was founded in 1812 and is headquartered in New York, New York.

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1.b. Last Insights on C

Citigroup's recent performance is driven by strategic exits, cost cuts, and gains in wealth and investment banking. The company's Q2 earnings beat expectations, with adjusted EPS up 29% YoY and revenue up 8% YoY. Citigroup's transformation initiatives, including streamlining processes and deploying AI, aim to drive stronger returns. A $20 billion share repurchase plan, including $2 billion in Q2, also supports shareholder value. The company's focus on improving performance across businesses and driving higher returns positions it for sustained growth. (Source: 24/7 Wall St.)

1.c. Company Highlights

2. Citigroup's Q3 2025 Earnings: A Strong Performance

Citigroup reported a net income of $3.8 billion and earnings per share of $1.86, with an ROTCE of 8%. The adjusted EPS was $2.24, beating analyst estimates of $1.73. Revenues increased by 9% to a record level, driven by growth across all businesses. The Services business had a record quarter with revenues growing 7%, driven by cross-border transactions and U.S. Dollar clearing. The company's expenses were $14.3 billion, up 9%, largely driven by a goodwill impairment. Adjusted expenses were $13.6 billion, up 3%. The company generated positive operating leverage for the firm and each of its five businesses.

Publication Date: Oct -16

📋 Highlights
  • Strong Revenue Growth and Record Business Performance:: Revenues increased 9%, with Services (+7%), Markets (+15%), and Banking (+34%) all reporting record quarters driven by cross-border transactions, fixed-income growth, and corporate lending.
  • Capital Returns and Solid Capital Position:: Returned $6 billion to shareholders via $5 billion in repurchases, while maintaining a 13.2% Common Equity Tier 1 ratio, 100 bps above regulatory requirements.
  • Progress in Transformation and AI Integration:: Over two-thirds of transformation programs on track, with 180,000 employees accessing AI tools, enhancing operational efficiency and client service capabilities.
  • Efficiency and Profitability Targets:: Targeting sub-64% efficiency ratio for 2025 and 10-11% ROTCE by 2026, supported by positive operating leverage across all five businesses and controlled adjusted expenses (+3%).
  • Strategic Asset Management:: Deconsolidation of Banamex (25% stake sale pending regulatory approval) and focus on tokenized deposits over stablecoins, aiming to maximize shareholder value and reduce complexity.

Segment Performance

The company's banking revenues were up 34%, driven by growth in corporate lending and investment banking, with investment banking fees up 17%. Banking net income was $638 million with an ROTCE of 12.3%. Wealth revenues rose 8%, with growth in Citi Gold and the Private Bank. US Personal Banking net income was $858 million with an ROTCE of 14.5%, driven by growth in Branded Cards and Retail Banking.

Capital Return and Capital Ratio

The company returned over $6 billion in capital to common shareholders during the third quarter, with $5 billion in share repurchases. The common equity Tier 1 capital ratio was 13.2%, over 100 bps above the regulatory requirement. Mark Mason noted that they are generating a more steady and predictable earnings stream, which has led to a stress capital buffer reduction for two years in a row.

Outlook and Valuation

The company expects to exceed $84 billion in revenues for the year, with NII ex-markets up around 5.5%. Analysts estimate next year's revenue growth at 3.0%. With a P/TBV ratio of around 0.85 and a dividend yield of 2.29%, the stock appears to be reasonably valued. Citigroup's guidance for a 10-11% ROTCE target in 2026 and an efficiency ratio below 60% suggests a continued focus on improving profitability.

Transformation Progress

The company is making progress on its transformation, with over two-thirds of its transformation programs at or close to their target date. Citigroup is committed to embedding AI into its processes, with nearly 180,000 colleagues having access to AI tools. The company is investing in tokenized deposits, which it sees as delivering what clients need: real-time money movement with minimal friction and low cost.

3. NewsRoom

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Citigroup promotes 276 employees to managing director in smallest class since 2020

Dec -03

Source: reuters.com

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Citigroup Announces Full Redemption of Series W Preferred Stock

Dec -03

Source: businesswire.com

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First Look: Airbus trims targets, AWS AI, AEO hikes outlook

Dec -03

Source: gurufocus.com

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Musinsa Eyes $6.8 Billion IPO as Global Fashion Platform Teases New York vs. Seoul Showdown

Dec -02

Source: gurufocus.com

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Citigroup hires BofA executive in prime brokerage push, source says

Dec -02

Source: reuters.com

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Should You Buy Citigroup Stock While It's Below $103?

Dec -01

Source: fool.com

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Is Citi Stock Set to Soar in 2026?

Dec -01

Source: fool.com

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Citigroup (NYSE:C) vs. China Construction Bank (OTCMKTS:CICHF) Critical Survey

Dec -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.10%)

6. Segments

Markets

Expected Growth: 3.5%

Markets segment is likely to grow slightly above the global average due to its diversified product offerings and the increasing demand for investment products. The growth is also driven by the segment's ability to adapt to changing market conditions.

Banking

Expected Growth: 3.3%

Banking segment is expected to grow above the global average due to its broad range of services and the increasing demand for corporate and investment banking services. The growth is driven by the segment's ability to provide tailored financial solutions to its clients.

Services

Expected Growth: 3.0%

Services segment is expected to grow in line with the global average, driven by the steady demand for transaction services and the increasing need for efficient cash management and trade finance solutions.

Wealth

Expected Growth: 3.2%

Wealth segment is expected to grow slightly above the global average, driven by the increasing demand for investment products and services. The growth is also driven by the segment's ability to provide tailored solutions to its clients.

U.S. Personal Banking (USPB)

Expected Growth: 3.1%

USPB segment is expected to grow in line with the global average, driven by the steady demand for consumer banking services and the increasing need for digital banking solutions.

ALL Other

Expected Growth: 0.0%

ALL Other segment is not expected to grow, as it represents unallocated costs and miscellaneous items that are not directly related to the core business segments.

Reconciling Items

Expected Growth: 0.0%

Reconciling Items segment is not expected to grow, as it represents adjustments to reconcile segment results to consolidated results, rather than a business segment with revenue growth potential.

7. Detailed Products

Consumer Banking

Provides traditional banking services to individuals, including checking and savings accounts, credit cards, personal loans, and mortgages.

Institutional Clients Group (ICG)

Offers corporate and investment banking services to large corporations, governments, and institutional investors.

Corporate and Investment Banking

Provides advisory services, capital markets, and transaction services to corporate clients.

Markets and Securities

Offers sales, trading, and research services to institutional clients across various asset classes.

Treasury and Trade Solutions (TTS)

Provides cash management, trade finance, and securities services to corporations and financial institutions.

Commercial Banking

Offers financial solutions to mid-sized companies, including cash management, lending, and trade finance.

Citi Branded Cards

Issues credit cards and provides payment solutions to consumers and businesses.

Citi Retail Services

Provides private label and co-brand credit cards to retailers and their customers.

8. Citigroup Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Citigroup Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the switching costs for customers are relatively high, which reduces the threat of substitutes.

Bargaining Power Of Customers

Citigroup Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and global presence reduce the dependence on individual customers.

Bargaining Power Of Suppliers

Citigroup Inc. is a large financial institution with a significant market presence, which reduces the bargaining power of its suppliers. The company's suppliers are often smaller entities that rely on Citigroup's business, giving the company an upper hand in negotiations.

Threat Of New Entrants

The financial services industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and complex regulatory hurdles. This reduces the threat of new entrants for Citigroup Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Citigroup Inc. faces intense competition from other large financial institutions, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.21%
Debt Cost 3.98%
Equity Weight 25.79%
Equity Cost 11.37%
WACC 5.88%
Leverage 287.81%

11. Quality Control: Citigroup Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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JPMorgan Chase

A-Score: 6.7/10

Value: 5.3

Growth: 5.2

Quality: 6.5

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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East West Bank

A-Score: 6.6/10

Value: 5.8

Growth: 7.7

Quality: 8.1

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Citigroup

A-Score: 6.2/10

Value: 6.7

Growth: 4.7

Quality: 4.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Bank of America

A-Score: 6.2/10

Value: 5.6

Growth: 5.3

Quality: 5.0

Yield: 5.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Wells Fargo

A-Score: 6.1/10

Value: 5.9

Growth: 5.2

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

108.88$

Current Price

108.88$

Potential

-0.00%

Expected Cash-Flows