Citi continued to advance its transformation, including efforts to improve risk management and modernize technology. Simultaneously, Citi recognized the need to accelerate progress in data quality management related to governance and regulatory reporting.

Citi completed its organizational simplification announced in September 2023, resulting in a simpler management structure that aligns to and facilitates Citi's strategy. This improves accountability and decision-making.

Citi continued to make progress on its remaining divestitures, including exits of consumer banking operations in Korea and Poland. Citi completed the separation of its businesses in Mexico from its consumer banking operations, an important milestone toward the planned IPO of Citi's Mexico Consumer/SBMM business.

Citi's positive operating leverage in 2024 was driven by revenue growth of 3%, with record revenues in Services, Wealth and USPB, and disciplined expense management (down 4%). This indicates effective management of resources and cost control.

Citigroup's Board of Directors authorized a new, multiyear $20 billion common stock repurchase program, with planned repurchases of $1.5 billion during the first quarter of 2025. This signals management's confidence in future cash flow generation.

Notwithstanding Citi's investments and remediation efforts, the FRB found that Citigroup had ongoing deficiencies related to its data quality management program. The OCC deemed that Citibank had failed to make sufficient progress toward achieving compliance with the OCC's 2020 Consent Order.

Various macroeconomic, geopolitical, and regulatory uncertainties and challenges pose risks to economic conditions in the U.S. and globally, including resurgence in inflation, trade policy changes, and the Russia-Ukraine war. These risks could negatively impact economic growth rates and Citi's financial condition.

Citi's ability to return capital to common shareholders substantially depends on regulatory capital requirements, including the results of the CCAR process and Dodd-Frank Act regulatory stress tests. Adverse results could limit Citi's ability to distribute capital.

Citi's transformation, simplification, and other priorities involve significant complexities and uncertainties. There is inherent risk that these initiatives will not be as productive or effective as Citi expects, or at all. This could impact Citi's ability to meet regulatory expectations and compete effectively.

Citi operates in an increasingly evolving and competitive business environment, which includes both financial and non-financial services firms. These companies compete on the basis of size, reach, quality and type of products and services offered, price, technology and reputation.

Citi's performance and the performance of its individual businesses largely depend on the talents and efforts of its diverse and highly qualified employees. If Citi is unable to continue to hire, retain and motivate highly qualified employees, its performance could be negatively impacted.

Climate change presents both immediate and long-term risks to Citi and its customers and clients, with the risks expected to increase over time. Climate risks can arise from both physical risks and transition risks.

Citi appointed a Chief Operating Officer, who reports to the CEO and is responsible for running Citi's overall transformation efforts, as well as leading Citi's efforts to improve operating efficiency and returns along with Citi's enterprise-wide effort to strengthen its risk and controls and data quality, and modernize infrastructure, while simplifying the Company.

In 2024, Citi's transformation-related expenses increased 1% to approximately $2.9 billion from the prior year, largely driven by increased spending on certain programs, including data, largely offset by a reduction in the payout under the Transformation Bonus Program.

All Other (managed basis) expenses decreased 19%, primarily driven by the lower FDIC special assessment ($203 million in 2024 versus approximately $1.7 billion in the prior year) and a reduction from the closed exits and wind-downs, as well as the lower restructuring charges ($259 million in 2024 versus $781 million in 2023), partially offset by the civil money penalties imposed by the FRB and OCC in July 2024.

Services expenses increased 6%, primarily driven by continued investments in technology and platform modernization, other risk and controls and product innovation, as well as an Argentina-related transaction tax expense and higher legal expenses, partially offset by the impact of productivity savings.

Markets expenses of $13.2 billion were largely unchanged versus the prior year, as higher legal and volume-related expenses were offset by productivity savings. This suggests efficient management of technology spending in this segment.

Wealth expenses decreased 2% to $6.4 billion, primarily driven by benefits from prior repositioning and restructuring actions, partially offset by higher volume-related expenses and technology investments focused on risk and controls and platform enhancements.

Citi returned $6.7 billion to common shareholders in the form of dividends ($4.2 billion) and share repurchases ($2.5 billion) in 2024. This demonstrates a commitment to returning value to shareholders.

Citigroup's Board of Directors authorized a new, multiyear $20 billion common stock repurchase program, with planned repurchases of $1.5 billion during the first quarter of 2025. This indicates confidence in the company's financial position and future prospects.

In 2024, Citi's transformation-related expenses increased 1% to approximately $2.9 billion from the prior year, largely driven by increased spending on certain programs, including data, largely offset by a reduction in the payout under the Transformation Bonus Program.

In addition to the 2030 net zero GHG emissions commitment for its own operations, Citi measures progress against operational footprint goals, which include efforts to reduce the environmental impact of its facilities through reductions in emissions, energy usage, water consumption and waste generation.

Citi's $1 Trillion Sustainable Finance Goal, as previously disclosed, is an integrated effort across the organization to finance and facilitate $1 trillion in environmental and social finance activities with product and service offerings across multiple lines of business.

Citi recognizes that energy transition, energy security and economic growth are not mutually exclusive and must be addressed simultaneously. Citi works on executing its climate commitments and supports its clients in financing their transition to low-carbon business models, while also working with clients to prioritize global energy security.

Various macroeconomic, geopolitical and regulatory uncertainties and challenges pose risks to economic conditions in the U.S. and globally, including, among others, any resurgence in inflation; changes to trade, immigration, energy and other policies resulting from the new U.S. administration.

Markets revenues of $19.8 billion increased 6%, driven by a 26% increase in Equity Markets and a 1% increase in Fixed Income Markets. The increase in Equity Markets was primarily driven by growth in cash equities and equity derivatives.

Investment Banking revenues of $3.6 billion increased 38%, due to a rebound in overall wallet activity and wallet share gains across all products. This reflects a positive trend in the market environment for Banking.