Citibank deal drives Axis Bank to Q4 loss (2024)

FAQs

What were the results of Citibank q4? ›

Citigroup reported a net loss for the fourth quarter of $1.8 billion. The loss comes after Citigroup previously disclosed a litany of one-time charges, which included a $780 million charge due to severance and other costs related to its restructuring efforts. Citigroup reported revenue of $17.4 billion.

Axis Bank declared the acquisition on Wednesday, March 30, 2022. A year later, the consideration has also exchanged hands. The bank has paid ₹11,603 crore, around ₹722 crore lower than the original consideration.

The loss was driven by $3.8 billion in charges disclosed in a filing on Wednesday that included reorganization expenses, a reserve related to currency devaluations and instability in Argentina and Russia and a $1.7 billion payment to replenish a government deposit insurance fund.

Citigroup is planning to lay off 20,000 employees, or about 10% of its workforce, in the next two years as it comes off its worst quarterly financial results in more than a decade.

Axis Bank announced on 1 March the completion of the acquisition of Citi India's consumer banking business for ₹11,603 crore .

Axis Bank Savings Accounts secure funds while offering features that ease financial transactions and boost savings. With online banking and the Axis Mobile app, the bank ensures efficient account management and fund transfers, becoming the preferred financial partner for countless customers nationwide.

Axis Bank has completed the acquisition of Citibank India's consumer banking business effective March 01, 2023. As the bank undertakes the integration over the next 18 months, this period could mean a series of changes and transition for Citibank India's customers as they become customers of Axis Bank.

Companies Considered Too Big to Fail

The Bank of New York Mellon Corp. Citigroup Inc. The Goldman Sachs Group Inc. JPMorgan Chase & Co.

What is the forecast for Citibank? ›

The average stock forecast for Citigroup Inc (C) in the next 12 months is 67.06 USD. This price target corresponds to an upside of 13.38%. The range of stock forecasts for Citi is 50.5 - 91.35 USD. Based on the ratings of 31 analysts, the consensus recommendation for Citi is Buy.

The Citibank case marks the hacker community's first foray into big-money banking. In 1994, Russian hacker Vladimir Levin engineered a heist from Citibank, tricking the company's computers into distributing an estimated $10 million to him and his accomplices in several countries.

Axis Bank's operating profit declined on-year for the first time in six quarters. The core operating profit growth is weaker than peers, and flat on a YoY basis. Axis Bank is the only lender to not see core operating profit growth sequentially. The bank's net interest margins (NIMs) moderated to 4.01%.

Axis Bank-Citibank merger complete: What will happen to your Citi credit card, Citi debit card, savings, NRE account, home loan? Yes, your Citi account will remain the same after the acquisition by Axis Bank.

Adjusted operating income for the fourth quarter was $5.1 million, with adjusted EBITDA of $10 million, and adjusted earnings per share of $0.53.

JPMorgan Chase reported fourth-quarter earnings per share of $3.04 and revenue of $38.6 billion. The nation's largest bank, JPMorgan reported net income of $9.3 billion for the quarter, a 15% drop from the $11 billion it reported for the same period a year ago.

The bank last week said it would cut 20,000 jobs over the next two years, after a fourth quarter marred by one-off charges that resulted in a $1.8 billion loss. While Citi has provided periodic updates on the cuts, investors and workers are closely watching the timing and details around the organizational changes.