Citigroup Inc. (NYSE:C) today released its financial report for the first quarter of 2024.
Citi reported Markets revenue of $5.4 billion, down 7% from a year earlier. The decrease reflects lower Fixed Income revenues, partially offset by higher equity revenues.
Markets net revenue of $1.4 billion decreased 25% due to higher expenses, lower revenue and higher credit costs.
Fixed income revenue of $4.2 billion decreased 10%, primarily due to lower interest rate and currency volatility and a strong prior-year comparison, partially offset by strength in margin products and other fixed income, which increased by 26%, due to the increase in customer activity.
Equity revenue of $1.2 billion increased 5%, driven by growth in cash trading and equity derivatives.
Markets operating expenses of $3.4 billion increased 7%, primarily due to the absence of release of legal reserves in the prior year period.
Across all segments, Citigroup’s revenue of $21.1 billion in the first quarter of 2024 was down 2% on a reported basis. Excluding the $1 billion divestiture-related impact, consisting primarily of the gain on the sale of the consumer business in India, revenue was up 3% year-over-year. This revenue increase was driven by growth in Banking, USPB and Services, partially offset by declines in Markets and Wealth.
Citigroup’s operating expenses of $14.2 billion on a reported basis were up 7%, which included repositioning costs of $258 million, an incremental FDIC special assessment of $251 million and restructuring charges of $225 million.
Excluding divestiture-related impacts and the FDIC phase-in special assessment, expenses increased 5%. This increase in spending was largely driven by inflation and volume-related expenses, partially offset by productivity savings.
Citigroup’s credit costs were approximately $2.4 billion in the first quarter of 2024, compared to $2.0 billion in the prior-year period, primarily due to higher net card credit losses, partially offset by the creation of lower allowance for credit losses (ACL).
Citigroup’s net income was $3.4 billion in the first quarter of 2024, compared with net income of $4.6 billion in the prior period, reflecting higher expenses, higher credit costs and lower income.