Citigroup Inc (NYSE:C) Revenue Projections

Citigroup Inc is on track to achieve the upper range of its revenue projections for 2024, as confirmed by Chief Financial Officer Mark Mason during his presentation at a Goldman Sachs Group Inc conference on Tuesday. Mason emphasized the bank's commitment to enhancing shareholder returns through increased share buybacks once there is more certainty regarding the bank's capital outlook.

Revenue Targets

The financial institution is working to meet its previously stated revenue target of between $80 billion and $81 billion, with expenses also reaching the upper limit of forecasts. This adherence to financial goals underlines Citigroup's efforts to meet key performance indicators set earlier in the year.

Focus on Profitability

Citigroup's focus on profitability and rebuilding investor trust has been a priority under the leadership of CEO Jane Fraser and CFO Mark Mason. The bank has undertaken significant restructuring to streamline operations and invest in data and technology enhancements.

Share Repurchase Activities

Despite holding a substantial capital reserve, Citigroup's share repurchase activities have been modest. Mason clarified that the conservative approach to buybacks was not influenced by regulatory penalties imposed in July for failing to sufficiently upgrade data management systems. He assured that neither buybacks nor dividends were impacted by these regulatory actions.

For the current quarter, Citigroup has set a goal of $1 billion in share buybacks, with half of that amount already completed. This move is part of a broader strategy to return more capital to shareholders, a priority that Mason underscored, acknowledging the bank's current market valuation compared to its peers.

Positive Operating Leverage

Additionally, Mason shared that net interest income, excluding market-related earnings, has surpassed expectations for the year. He projected continued positive operating leverage into 2025 and beyond. The bank's equities division, particularly prime balances, is witnessing strong momentum, with market revenues anticipated to rise significantly.

Consumer Credit Performance

In the consumer credit sector, Citigroup's card business has not experienced an unusual level of delinquencies. However, net credit losses in the retail segment are at the higher end of the bank's guidance, indicating close monitoring of consumer credit performance.

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