Citi Investor Day: No Guidance Moves, Spreads Outperforming In Last Week

Citigroup (C: A3/BBB+/A) is holding an investor day covering its services business today. Headlines around financial updates basically confirm current consensus. Few credit implications but notable how much Citi’s spreads have outperformed €IG spreads in the last week (along with MS, WFC and USB.

• Explicit financial guidance is for revenues in 2024 to be USD80-81bn (cons: 80.7bn), costs USD53.5-53.8bn (cons: 53.7bn) so fundamentally all in line and no credit impact.
• The services business is a little under a quarter of group revenues but as much as half of group profit on some measures. It includes treasury, trade, securities services and payments businesses, many of which interact with a broad range of the other group businesses.
• Citi’s €IG bond spreads have broadly tracked the wider index tighter YTD but have outperformed a by around 10bp in the last week as it’s remained relatively insulated from the macro sell-off focused on French political events.