CitigroupNYSE: C

The Investment Committee discusses the most recent Calls Of The Day.

C will use Google Cloud's Vertex AI platform to provide generative AI features throughout the company.

According to 24/7 Wall St. Insights, the stock market has increased by an impressive 34% compared to last year.

Citi has partnered with Google to enhance its digital strategy using artificial intelligence (AI) and cloud technology. This collaboration, revealed on Monday (Oct. 28), aims to improve the banking giant's infrastructure by leveraging Google Cloud's knowledge.

HONG KONG--(BUSINESS WIRE)--Citi has introduced Citi Digital Bill (CDB), a modern digital bill discounting solution that updates traditional methods. CDB simplifies the process by removing the need for physical documents and couriers, streamlining transactions across various locations. For sellers, CDB offers a quicker and clearer way to handle receivables, cutting down the time to convert them into cash from a week to under an hour.

C finishes the third quarter of 2024 positively, with good growth in the IB business boosting fee income. However, an increase in credit losses is worrying.

C's restructuring efforts are showing positive results, although they are currently affected by increased costs of interest-bearing deposits and higher loan losses at USPB. However, with the Federal Reserve lowering interest rates, the bank's outlook may improve in the near future as mortgage and lending activities pick up. The growth in the Services segment's return on tangible common equity is expected to support strong profit growth starting in FY2025, especially with the Banamex IPO planned for that year.

Citigroup's shares dropped by 5% even though they reported good earnings, mainly because investors took profits and there are exaggerated worries about regulations. The stock is currently valued at about 0.7 times its tangible book value, with the possibility of rising to between $120 and $170 by 2026 if return on tangible common equity goals are achieved, providing a good safety margin. The strong performance in the third quarter of 2024 shows positive growth in all areas, supporting the revenue and expense goals for the entire year.

The most important earnings reports for investors to review this season have just been released, especially from the financial sector, focusing on banking stocks. It's essential for investors to recognize that there are two main categories of banks to pay attention to this season: commercial banks and investment banks.