Citigroup: Q3 Performance Justify Fair Value

Nov. 27, 2024 7:24 AM ETCitigroup Inc. (C) Stock, CITI:CA Stock
Shariq Khan profile picture
Shariq Khan
159 Followers
(10min)

Summary

  • Citigroup's transformation under CEO Jane Fraser shows progress in Services, Banking, and Wealth, but faces challenges in US Personal Banking and Markets due to rising credit costs.
  • Q3 2024 results show a 1% revenue increase to $20.3 billion, but net income fell 9% due to higher credit costs, highlighting short-term challenges.
  • Citi's valuation metrics indicate a mixed picture: a high P/E ratio suggests accounting risks, but a low P/B ratio offers a margin of safety for long-term investors.
  • Despite rising credit costs and underwhelming RoTCE, Citi's strong capital position and strategic cost management offer long-term growth potential, making it a "Hold" for now.

Citibank company headquarters office building

Robert Way

Investment Thesis

Citigroup Inc. (NYSE:C) is among the ‘Big Four’ powerful financial institutions globally, with a market value of around $100 billion. It is, therefore, a cornerstone of the global financial system. CEO Jane Fraser is in the middle of a transformation at Citi. The

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Shariq Khan profile picture
159 Followers
I am a financial writer with a degree in Finance. In my five-year career, I have worked with two financial companies. I keep a close eye on Energy, Banking, and Tech stocks. My main focus is fundamental analysis and looking at the long-term position of a stock instead of short-term analysis. The main reason I joined Seeking Alpha as an analyst is that it provides a like-minded community of individuals where I can share my analysis about stocks and exchange thoughts. If you want a deep analysis of Energy, Banking, or Tech stocks, please follow me for further updates.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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