Citibank is part of Citigroup, which, with $21 trillion in assets under custody and a market cap of $83.72 billion, ranks among the biggest banks in the U.S.
Citigroup’s Financial Position
For 2021, its most recent full year, Citigroup’s net income was about $22 billion on $71.9 billion in revenue — compared to $11 billion in net income on $75.5 billion in revenue for 2020 — according to the earnings statement. Heading into 2022, CEO Jane Fraser reaffirmed Citibank’s commitment to a strategy that had it exiting weak markets.
Recent exit moves include sale of the Philippines consumer business, which generated a profit, and sale of the Australia consumer business, which resulted in a loss. The company will cease operations in Russia by the end of 2022.
In its most recent earnings results, for the third quarter of 2022, Citigroup reported a 25% decrease in net income from the same quarter last year, which it attributed to higher expenses and higher cost of credit in its Personal Banking and Wealth Management business.
However, the company said in its earnings statement that the decline was partially offset by an increase in revenues, which grew 6% to $18.5 billion and, according to CNBC, exceeded analysts’ expectations. In addition, Citi returned $1 billion to shareholders — a sign that it has plenty of cash on hand. Although Citi shares are down nearly 29% year to date, they rose slightly after the financial results were released.
Keep reading to learn about other factors that investors should consider to decide if they should back Citibank stock.
Citibank at a Glance
|Citigroup CEO Jane Fraser’s Salary (2021)||$1.33 million base salary|
|What Citibank Is Worth|
|Share Price, 52-Week Range||$40.01-$72.55|
|2021 Revenue||$71.89 billion|
|2021 Profit||$21.95 billion|
|GOBankingRates’ Evaluation of Citibank’s Net Worth||$327.08 billion|
Citibank’s Market Cap: $83.72B
Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. Citibank’s market cap has fluctuated in proportion to fluctuations in its stock price, which has ranged from $40.01 to $72.55 over the past 52 weeks.
Citibank’s Net Worth: $327.08B
Although market cap can give you a sense of how much the market values a company, it’s not strictly accurate, because it’s based on market sentiment, which is dictated by the frequently changing opinions of investors.
The GOBankingRates Evaluation, on the other hand, calculates a company’s net worth based on measurable figures like assets and revenue. It differs from the market value, as it takes into account full-year profits and revenue from a company’s last three years, as well as its assets and debts.
Based on Citibank’s full-year revenue and profits from the last three years, the company was worth about $327.08 billion at the end of 2021.
Citibank Faces a Tough Road Ahead
Like many financial institutions that survived the financial crisis of 2008, a government bailout assisted in Citibank’s survival. What makes Citibank’s bailout notable is that the company received more bailout money than any other bank: a grand total of $476.2 billion in cash and guarantees.
Since then, Citibank has been mired in a series of scandals, such as incurring a hefty fine of $700 billion for illegal credit card practices, taking advantage of student loan borrowers and manipulating Libor, a benchmark interest rate that is currently being phased out that affects loan rates — and thus money — worldwide.
In a 2020 move a U.S. District Court judge called “one of the biggest banking blunders in banking history,” Citibank mistakenly wired $900 million to Revlon lenders instead of the $8 million the bank had intended to pay.
Two months later, the Federal Reserve and the Office of the Comptroller of the Currency fined Citigroup $400 million for its “longstanding failure to establish risk management,” The New York Times reported.
All of these legal issues indicate liability, despite the bank’s valuation, and analysts appear to agree that Citibank’s growth has been overshadowed by that of fellow big banks JPMorgan Chase, Bank of America and even Wells Fargo, which has had plenty of legal problems of its own.
Michael Corbat is the former CEO for Citigroup, which oversees Citibank. His retirement commenced in February 2021, and the board of directors named Jane Fraser as the successor. Fraser is the first female CEO in the company’s history.
She went to work for Citi’s Corporate and Investment Banking division in 2004 and worked through the ranks to become CEO of U.S. Consumer and Commercial Banking and CitiMortgage, CEO of Citigroup Latin America and president of Citi and CEO of the Global Consumer Bank, which is responsible for all of Citi’s consumer businesses, before stepping into her current role.
Fraser’s total 2021 compensation was $20,541,324, which included $9.25 million in salary and bonuses, $11.22 million in equity and $79,718 in other compensation, according to Salary.com.
Citibank Is Investing Billions in Technology
Citi® was not the first bank to use ATMs, but it was one of the first to invest in them. It poured over $100 million into an installation chain of ATMs across New York City, launching the first one in Queens in 1977. As of 2022, Citi has more than 62,000 ATMs and over 600 Citi locations worldwide.
The company continues to serve as a leader in technology such as 5G, mobile and digital payments. Citibank announced in 2020 that it is expected to save $600 million through advances in technology and automation.
Citibank Sets Its Sights on Net Zero Emissions
Citi announced on Jan. 19 that it intends to play a leading role in transitioning to a net zero global economy. In addition to committing to achieving net zero greenhouse emissions in its own operations by 2030 and globally by 2050, Citi aims to reduce financed emissions targets in its Energy and Power loan portfolios by 29%, using 2020 as a baseline.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Oct. 17, 2022, and subject to change.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
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