Citi's US sales increase 54% in 4Q2019

Citigroup has reported net income for the fourth quarter of 2019 of US$5 billion, or US$2.15 per diluted share, on revenues of US$18.4 billion. This compared to net income of US$4.3 billion, or US$1.64 per diluted share, on revenues of US$17.1 billion for the fourth quarter of 2018.

Revenues increased seven percent from the prior year period, with strong results across both global consumer banking (GCB) and the institutional clients group (ICG). The latter’s revenues, at US$9.4 billion, increased 10%, due to, among others, strong performance in fixed income markets whose revenues of US$2.9 billion increased 49% year-on-year.

The large increase of fixed income markets revenues reflected a recovery from the prior-year period in addition to strong performance, particularly in rates and spread products.

Equity markets revenues of US$516m decreased 23%, reflecting a more challenging environment in derivatives. Securities services revenues of US$647m decreased one percent on a reported basis, but were largely unchanged in constant dollars, as higher volumes were offset by lower spreads.

Citi issued 44,345 structured products between October 1 and December 31 2019, according to SRP data. The majority of those were flow and leverage certificates listed on Euronext, and the exchanges of Frankfurt and Stuttgart.

In the US, the bank collected sales of US$1.2 billion from 402 products, up 54% in sales volume compared to the prior year quarter (US$779.7m from 285 products).

The bank’s best-selling US product were the Equity Linked Notes 17327TV86, which sold US$63m during its subscription period. The seven-year, capital protected note participates 100% in the upside performance of the common stock of Exxon Mobil.

The US offering included a number of structures tied to a proprietary index: Citi Radar 5 Excess Return Index (20 products) and Citi Dynamic Asset Selector 5 ER Index (29 products). The majority of these products were certificates of deposit.

Outside the US, Citi introduced 25 products in Taiwan (US$80.3m) which were targeted at private banking investors while 12 products were launched in Brazil in collaboration with XP Investimentors, a local provider. 

In the UK, the bank issued four products in the quarter which were distributed via Meteor (three) and Hilbert Investment Solutions (one), respectively.

For the full year of 2019, Citigroup reported a net income of US$19.4 billion on revenues of US$74.3 billion, compared to net income of US$18 billion on revenues of US$72.9 billion for the full year 2018.

‘Due to good client engagement, we drove balanced growth across our products and geographies, closing the year with 16 consecutive quarters of loan and deposit growth,’ said Michael Corbat (pictured), CEO, commenting on the results.

‘We enter 2020 in a strong competitive position, from capital and liquidity to talent and technology,’ he added.

Click the link to view the fourth quarter and full year 2019 results and supplement.