Citigroup (C.US) will announce its first quarter results before the US stock market on April 14 (Friday). The market expects Citi Q1 revenue of 19.19 billion US dollars and earnings of 1.70 US dollars per share. In comparison, revenue for the same period last year was $19.19 billion, and earnings per share were $2.02.

Commercial banks such as Citi did not perform as well as investors expected in 2022, especially during a period of rising interest rates. Banks usually benefit from interest rate hikes, as this increases net interest spreads and overall profits. However, this was not the case for Citi. The bank's stock price fell 22% in 2022, underperforming other bank peers.

Citi rose moderately in 2023, up 2%, but it still lagged behind the 7% increase in the S&P 500 index. Like other banks, the impact of the Silicon Valley bank's bankruptcy put pressure on Citibank's stock price. Citi's stock price fell 12% in the past month, while the S&P 500 index rose 1.4%.

But Citi's prudent strategy is expected to make it perform well over the next 12 to 18 months. These strategies include divesting its global consumer banking business, accelerating investment in wealth management, and more investment in the services sector, including trade and transaction services and security services. As we enter the first quarter, investors will be watching Citi's progress in these key areas.

Meanwhile, Citi's stock price is around 70% of its tangible book value, and the dividend yield is 4.46%. Analysts believe that Citi is a good and inexpensive stock. In particular, the bank is likely to resume its stock repurchase plan.

Editor/Phoebe