Citigroup Aims for Upper Limit of 2024 Revenue Target, Plans Share Buybacks
Mark Mason, Chief Financial Officer of Citigroup Inc., confirmed during a presentation at the Goldman Sachs Group Inc. conference on Tuesday that the bank is on track to reach the upper range of its 2024 revenue projections. Mason emphasized the bank's commitment to increasing shareholder returns through increased stock buybacks as more clarity emerges regarding the capital outlook.
The financial institution is working to meet its revenue target, previously stated to be between $80 billion and $81 billion, with expenses also reaching the upper limit of projections. This commitment to financial goals highlights Citigroup's efforts to meet the key performance indicators set earlier in the year.
Under the leadership of CEO Jane Fraser and CFO Mark Mason, Citigroup has prioritized focusing on profitability and rebuilding investor confidence. The bank has undergone a significant restructuring to streamline operations and invest in data and technology enhancements.
Despite having a substantial capital reserve, Citigroup’s stock buyback activities have been modest. Mason stated that the cautious approach to buybacks was not influenced by regulatory penalties imposed in July due to insufficient upgrades to data management systems. He confirmed that these regulatory actions had no impact on buybacks or dividends.
For the current quarter, Citigroup has set a stock buyback target of $1 billion, half of which has already been completed. This move is part of a strategy to return more capital to shareholders, with Mason emphasizing this priority by acknowledging the bank's current market valuation compared to its competitors.
Additionally, Mason shared that net interest income, excluding market-related earnings, has exceeded expectations for the year. He projected positive operational leverage for 2025 and beyond. The bank's equities division, particularly in core balances, is experiencing strong momentum, with significant market income growth anticipated.
In the consumer lending sector, Citigroup's card business has not faced an unusual level of defaults. However, net credit losses in the retail segment are at the higher end of the bank's guidance, indicating that consumer credit performance is being closely monitored.