Jane Fraser, new CEO of Citigroup.
Citigroup is expected to release its first-quarter results before the opening bell on Thursday.
Here are the numbers:
- $2.02 per diluted share vs. $1.55 per share Refinitiv estimate
- Revenue: $19.19 billion vs. $18.15 billion estimated
How affected will Citigroup be by its exposure to the Russian invasion of Ukraine? That will be a question posed to Citigroup CEO Jane Fraser, who took over the New York-based bank a year ago. During this period, she announced her intention to exit more than 13 markets outside the United States in an effort to improve the bank’s returns.
Citigroup, the most global of the big US banks with operations in more than 100 countries, is probably the most exposed to the Ukrainian conflict. Analysts will be keen to understand the various impacts of the war on the company, including on its plan to sell a Russian consumer banking unit.
Last month, Fraser gave analysts a new set of financial targets, including a medium-term target for tangible common stock returns, a key metric for the banking industry, of around 11% to 12%. The event was an opportunity for the bank to reset its expectations after years of underperformance by peers including JPMorgan Chase and Bank of America.
Like the rest of the industry, Citigroup is expected to experience a slowdown in investment banking revenue, somewhat offset by the benefit of rising interest rates.
Despite already trading at the lowest valuation among its peers, Citigroup shares have lost 17% this year, compared to the 10.5% drop in the KBW banking index.
On Wednesday, JPMorgan said first-quarter profits fell 42% as it posted losses related to Russian sanctions and set aside cash for future loan losses. After the report, its shares fell and hit a 52-week intraday low.
This story is developing. Please check for updates.