In its most recent earnings results, for the fourth quarter of 2021, Citigroup reported a 26% decrease in net income from the same quarter last year, which it attributed to higher expenses. However, the company said in its earnings statement that the decline was offset by lower credit costs and an increase in revenue.
For the 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 Citi’s commitment to a strategy that has it exiting weak markets, most recently by selling off four businesses in Asia. Fraser previously exited 13 retail markets in Asia and Europe and intends to leave South Korea and Mexico as well, CNBC reported.
Keep reading to learn about other factors that investors should consider to decide if they should back Citibank stock.
|Citigroup CEO Jane Fraser’s Salary||$500,000 base salary|
|What Citibank Is Worth|
|Share Price, 52-Week Range||$57.40-$80.29|
|2021 Revenue||$71.887 billion|
|2021 Profit||$21.952 billion|
|GOBankingRates’ Evaluation of Citibank’s Net Worth||$327.08 billion|
|Information on 52-week range is accurate as of Jan. 19, 2022.|
Citibank’s Market Cap: $218.46B
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 $57.40-$80.29 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 revenue and profits from the last three years, the company is worth about $327.08 billion.
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 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 2020 compensation was $16,710,724, which included $8.72 million in salary and bonuses, $7.41 million in equity and $581,332 in pension and other compensation, according to the Economic Research Institute.
Citibank Is Investing Billions in Technology
Citibank was not the first bank to use ATMs, but it was one of the first to invest in them. It poured over $100 million in an installation chain of ATMs across New York City, launching the first one in Queens in 1977. As of 2018, Citibank has more than 65,000 ATMs and over 2,300 Citibank 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 gobally 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 Jan. 19, 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.
Editorial Note: This content is not provided by Citibank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been endorsed by Citibank.