Citigroup Inc (NYSE:C) stock fell 0.20% (As on January 16, 11:24:41 AM UTC-4, Source: Google Finance) after the company lowered a crucial profitability target that Chief Executive Officer Jane Fraser put at the center of her campaign to turn around the bank as it struggles to contain costs. Citigroup’s move confirms what analysts have warned: that the lender may find it hard to keep a lid on expenses while it implements a plan to overhaul operations around the world and strengthen internal controls that have frustrated regulators. Still, Fraser has sought to improve what the bank is offering its investors. She announced that the company’s board of directors has authorized a program that will let Citigroup repurchase $20 billion worth of stock in the coming years. Citigroup’s total allowance for credit losses was approximately $22.2 billion at quarter end, compared to $21.8 billion at the end of the prior-year period. Total ACL on loans was approximately $18.6 billion at quarter end, compared to $18.1 billion at the end of the prior-year period, with a reserve-to-funded loans ratio of 2.7%, unchanged from the end of the prior-year period.

C in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.34, beating the analysts’ estimates for the adjusted earnings per share of $1.22, according to average estimate of analysts tracked by Bloomberg. The company had reported the adjusted revenue growth of 12 percent to $19.58 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $19.55 billion. This is driven by growth in each of Citi’s businesses and the smaller impact from the currency devaluation in Argentina, partially offset by a decline in All Other. Net income was $2.9 billion, compared to a net loss of $(1.8) billion in the prior-year period, primarily driven by the higher revenues, lower expenses and lower cost of credit.

Moreover, the revenue from fixed income trading soared 37% to $3.5 billion, trouncing the $2.94 billion average of analyst estimates. Equities trading revenue also climbed 34% to $1.1 billion. While corporate lending and debt underwriting revenues were lower than expected, the firm’s investment bankers and equity underwriters topped predictions.

The lender now expects return on tangible common equity to be between 10% and 11% by the end of next year. It had previously forecast the metric would be between 11% and 12% by that time.