Citigroup Inc. (NYSE:C) today posted its financial report for the first quarter of 2024.
Citi reported Markets revenues of $5.4 billion, down 7% from a year earlier. The decline reflects lower Fixed Income revenues, partially offset by growth in Equity revenues.
Markets net income of $1.4 billion decreased 25%, due to higher expenses, the lower revenues and higher cost of credit.
Fixed Income revenues of $4.2 billion decreased 10%, largely due to rates and currencies on lower volatility and a strong prior-year comparison, partially offset by strength in spread products and other fixed income, which was up 26%, driven by an increase in client activity.
Equity revenues of $1.2 billion increased 5%, driven by growth across cash trading and equity derivatives.
Markets operating expenses of $3.4 billion increased 7%, largely driven by the absence of a legal reserve release in the prior-year period.
Across all segments, Citigroup revenues of $21.1 billion in the first quarter 2024 decreased 2%, on a reported basis. Excluding divestiture-related impacts of $1 billion, primarily consisting of the gain from the sale of the India consumer business, revenues were up 3% year over year. This increase in revenues was driven by growth across Banking, USPB and Services, partially offset by declines in Markets and Wealth.
Citigroup operating expenses of $14.2 billion on a reported basis increased 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 incremental FDIC special assessment, expenses were up 5%. This increase in expenses was largely driven by inflation and volume-related expenses, partially offset by productivity savings.
Citigroup cost of credit was approximately $2.4 billion in the first quarter 2024, compared to $2.0 billion in the prior-year period, primarily driven by higher cards net credit losses, partially offset by a lower allowance for credit losses (ACL) build.
Citigroup net income of $3.4 billion in the first quarter 2024, compared to net income of $4.6 billion in the prior-year period, reflecting higher expenses, higher cost of credit and the lower revenues.
