KEY TAKEAWAYS
- Citigroup shares fell after it reported higher fourth-quarter charges than previously anticipated linked to its exposure to Argentina and Russia, as well as its restructuring.
- Citi said it set aside $1.3 billion in reserves to cover its exposure to Argentina and Russia.
- The FDIC's special assessment led to expenses of $1.7 billion.
- Citi is due to release its fourth-quarter results Friday morning.
Citigroup (C) shares fell more than 2% in early trading Thursday after it reported higher fourth-quarter charges than it previously disclosed linked to its exposure to Argentina and Russia, as well as its own overhaul.
Citi, which reports its fourth-quarter results Friday morning, said in a regulatory filing Wednesday that it had set aside a total of $1.3 billion in reserves for the fourth quarter tied to currency exposures in Argentina and Russia's ongoing political and economic instability. It also announced $780 million of charges related to CEO Jane Fraser's restructuring of the bank.
The New York bank lender said it expects to take a $1.7 billion charge to help refill the Federal Deposit Insurance Corporation's (FDIC's) deposit insurance fund. The FDIC imposed special fees to replenish the fund after the collapse of Silicon Valley Bank and Signature Bank.
CFO Mark Mason said in a post on the Citi's website that the bank remains on track to meet its medium-term targets.
Citi shares were down 2.7% at $51.60 per share as of about 11 :45 a.m. ET Thursday following the news. They have gained around 6% over the past year.
FAQs
KEY TAKEAWAYS. Citigroup shares fell after it reported higher fourth-quarter charges than previously anticipated linked to its exposure to Argentina and Russia, as well as its restructuring.
Why did Citibank stock drop? ›
April 11 (Reuters) - Citigroup's (C.N) , opens new tab first-quarter profit fell 27% as the bank took charges related to its reorganization, although it beat expectations as revenues grew in key divisions. The bank's shares were volatile, wiping out an earlier gain to slide 2% while other bank stocks also weakened.
Why is Citigroup stock so low? ›
Part of the reason for this lackluster performance is that the bank has produced disappointing results. Citigroup's recently-reported fourth-quarter results followed this trend, as the bank posted a $1.8 billion loss, which arose from a smorgasbord of charges related to overseas risks.
What is the prediction for Citigroup? ›
Average Price Target
Based on 18 Wall Street analysts offering 12 month price targets for Citigroup in the last 3 months. The average price target is $68.94 with a high forecast of $86.00 and a low forecast of $60.00. The average price target represents a 14.79% change from the last price of $60.06.
What's happening with Citigroup? ›
Citigroup Facing New Regulatory Knock on Its Living Will
The FDIC is preparing to hand Citigroup a failing grade on its living-will plan, the latest rebuke for the megabank that has struggled to stay in the government's good graces.
Why is Citibank struggling? ›
Citi has been struggling to right itself since the financial crisis. Citi was left with a hodgepodge of wealth businesses a fraction of that size. They include the high-end private bank, a lower-end business called Citigold for retail customers and another operation catering to lawyers and other professionals.
What's happening to Citibank? ›
About the changes
NAB has been the provider of your products since 1 June 2022. On 24 February 2024, Citi branded deposit and home loan accounts were closed and moved to a similar NAB branded account. For credit card and personal lending accounts you can continue to use your account as normal.
Is Citigroup a good buy now? ›
Is Citigroup stock a Buy, Sell or Hold? Citigroup stock has received a consensus rating of buy. The average rating score is and is based on 43 buy ratings, 26 hold ratings, and 11 sell ratings.
Is Citibank a safe investment? ›
Overview. Citibank is a good option for savers looking for an institution with global reach and the fullest possible range of deposit and lending products.
What is the future of Citibank? ›
The bank plans to focus on medium-sized businesses that are looking to scale up, start-up space and channelising the flow of foreign funds for India investments. After exiting the retail business, Citi Bank is all set to tap the growing business and economic footprint in the country.
User reports indicate no current problems at Citi
Clients can review their account balances and transactions through online banking and mobile banking apps for iPhone, iPad, Android, Windows Phone and Blackberry devices.
What is the reputation of Citigroup? ›
It is considered a systemically important bank by the Financial Stability Board and is commonly cited as being too big to fail. It is one of the eight global investment banks in the Bulge Bracket. Citigroup is ranked 36th on the Fortune 500, and was ranked #24 in Forbes Global 2000 in 2023.
Did Citigroup stock split? ›
Citigroup stock (symbol: C) underwent a total of 10 stock splits. The most recent stock split occured on May 9th, 2011. One C share bought prior to March 13th, 1987 would equal to 2.4096385542169 C shares today.
What will happen to Citibank? ›
What changes. Once the full systems integration is completed towards the end of the first quarter of 2024, the Citibank online website and Citi mobile app will be deactivated. You will need to create a profile on UnionBank Online.
Is Citigroup stock a buy now? ›
Is Citigroup stock a Buy, Sell or Hold? Citigroup stock has received a consensus rating of buy. The average rating score is and is based on 43 buy ratings, 26 hold ratings, and 11 sell ratings.
Why is ADBE stock down? ›
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