Citigroup earnings beat expectations on 49% fixed-income trading surge

Earnings

A Citibank branch in Hong Kong.

Vincent Isore | IP3 | Getty Images

Citigroup is slated to report its calendar fourth-quarter results on Tuesday as investors brace for a highly anticipated earnings season.

Here’s what analysts are expecting to see from the banking giant’s results:

  • Earnings: $1.84 per share, according to Refinitiv
  • Revenue: $17.889 billion expected
  • Net interest margin: 2.56% forecast by FactSet
  • Fixed income, currencies and commodities trading revenue: $1.24 billion expected
  • Equities trading revenue: $673.7 million forecast
  • Loans: $700.04 billion forecast

Citigroup shares are coming off their best year since 1999, surging more than 53% in 2019. Those gains outpaced those of rival banks J.P. Morgan Chase, Wells Fargo, and Bank of America. J.P. Morgan and Bank of America both rose more than 40% last year, while Wells Fargo advances just 16.8%.

Wells Fargo banking analyst Mike Mayo raised last month his price target on the stock to $97 per share from $85 per share, telling CNBC’s “Fast Money” it’s his favorite banking stock “because it’s just so inexpensive and they’re buying back so many stock.” Goldman Sachs also added Citigroup to its conviction buy list last week while Bank of America called it its “pick of the decade.”

Still, expectations for Citigroup are high heading into its earnings release. Refinitiv’s profit estimate represents a 14% year-over-year jump from $1.61 per share.

This story is developing. Please check back for updates.

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