7 Best Bank Stocks To Buy in 2024

3. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Investors: 85

The third largest U.S. lender, Citigroup Inc. (NYSE:C), has headquarters in New York, was established in 1812, and offers financial services and products. The segments that it operates through include Corporate/Other, Institutional Clients Group, and Global Consumer Banking.

Citigroup operates a retail banking division with a domestic focus as well as an international commercial banking franchise. Large trading, investment banking, international corporate banking, and custody operations are all part of the bank’s commercial operations, which include services, markets, and banking segments (which were formerly combined under the Institutional Client Group, or ICG). Given its impossible-to-replicate global scope, Citi’s most distinctive business is its commercial banking division. Citigroup’s global reach contributes to its continued status as the preferred bank for multinational corporations.

The company earnings for the second quarter of 2024, are comfortably above analyst consensus projections for both revenue and earnings, powered by strong performance in Markets and Investment Banking, which reported YoY revenue increases of 6% and 38%, respectively. Shares fell by about 2% in spite of the impressive results, though, amid investor worries about expenses, dividends, and market share and as Citigroup issued a warning that costs for FY 2024 may come in at the higher end of the range.

Diamond Hill Capital Long-Short Fund stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:

“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”

The Hold rating given by DBS analyst Lim Rui Wen is a reflection of worries about small growth catalysts and restructuring difficulties. However, analysts also considered 2024 a transitional year for Citigroup Inc. (NYSE:C), as the company becomes leaner under CEO Jane Fraser’s turnaround.

Although high investment expenses and continuous regulatory scrutiny may put pressure on the financial company’s short-term performance, the company’s strategic exits and efficiency gains are intended to increase future profitability.

Warren Buffett’s Berkshire Hathaway is the largest shareholder in the company, with 55,244,797 shares worth $3.51 billion.