Citigroup Inc. (C) saw its stock rise 4% in premarket trading on Friday following better-than-expected earnings that surpassed analyst estimates. Despite Chief Executive Jane Fraser acknowledging a disappointing quarter due to significant items, she highlighted the substantial progress made in simplifying the bank as part of its restructuring strategy. As a result, Citi is laying off 7,000 employees.
For the fourth quarter, Citigroup reported a net loss of $1.8 billion, or $1.16 per share when including all items. In the same period the previous year, the bank recorded a net income of $2.5 billion, or $1.16 per share. However, excluding $2 in one-time items, Citigroup earned 84 cents per share, significantly surpassing the FactSet consensus estimate of 11 cents per share.
Although Citi’s reported revenue declined by 3% to $17.4 billion, it still experienced a 2% increase when excluding the impact of divestures. The gains were driven by its services, U.S. personal banking, and investment banking sectors. On the other hand, revenue fell for its markets and wealth businesses.
In terms of staffing, Citigroup’s direct workforce decreased by 1,000 individuals, totaling 239,000 as of December 31.
During the quarter, notable items included a $1.76 billion charge for the FDIC special assessment related to the failure of Silicon Valley Bank and other banks. Additionally, there was a reserve build of $1.3 billion tied to transfer risk in Russia and Argentina, along with an approximately $880 million restructuring charge.
Overall, Citigroup’s impressive performance reflects its commitment to streamlining operations and achieving strategic goals.
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