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Citigroup 1Q24: A Beat But Credit Quality Weaker, Offset by Raised Guidance

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Citigroup 1Q24 results are marginally ahead of consensus, we feel, capital is as expected but credit metrics showed some further deterioration. The call is likely to focus on these and, along with any news on group simplification, could be interesting. Forward guidance improvement is likely to offset any spread negatives from that credit news, in our view.
  • Key credit metrics: CET1 ratio is 13.5% (+10bp q/q), in line with expectations. Credit losses in US retail are higher q/q across product lines and non-performers are broadly higher, too. This will be a subject of some questioning later, we feel.
  • Results headlines: revenues beat by c.3%, largely driven by the investment ban, but were 2% lower overall. Credit losses are higher than 1Q23 but lower than the end of last year and broadly in line with expectations. FICC is down 10%, equities up 5%.
  • Outlook: cost guidance is marginally higher than current consensus, but revenue guidance is also c.1% better than expectations. Citigroup is undergoing a major restructuring (again) so questions around business disposals and simplifications will feature in the call, too.
Conf call is 1600 London time at https://www.veracast.com/webcasts/citigroup/webina...
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Citigroup 1Q24 results are marginally ahead of consensus, we feel, capital is as expected but credit metrics showed some further deterioration. The call is likely to focus on these and, along with any news on group simplification, could be interesting. Forward guidance improvement is likely to offset any spread negatives from that credit news, in our view.
  • Key credit metrics: CET1 ratio is 13.5% (+10bp q/q), in line with expectations. Credit losses in US retail are higher q/q across product lines and non-performers are broadly higher, too. This will be a subject of some questioning later, we feel.
  • Results headlines: revenues beat by c.3%, largely driven by the investment ban, but were 2% lower overall. Credit losses are higher than 1Q23 but lower than the end of last year and broadly in line with expectations. FICC is down 10%, equities up 5%.
  • Outlook: cost guidance is marginally higher than current consensus, but revenue guidance is also c.1% better than expectations. Citigroup is undergoing a major restructuring (again) so questions around business disposals and simplifications will feature in the call, too.
Conf call is 1600 London time at https://www.veracast.com/webcasts/citigroup/webina...