Citigroup faces risks from macroeconomic volatility (recessions, inflation, interest rate changes), geopolitical tensions (Russia-Ukraine war, China-related issues), regulatory changes (Basel III revisions, consent order compliance), credit risk (defaults, loan modifications), liquidity risk (funding sources, deposit outflows), and market risk (interest rate and currency fluctuations). Emerging market exposures (Argentina, Russia) present additional risks. Litigation and legal contingencies also pose a risk.
Financial Upside
Citigroup's revenues increased 1% year-over-year on a reported basis and 3% excluding divestiture impacts. Growth was seen across segments, partially offset by a decline in All Other (managed basis). Expenses decreased 2% year-over-year, excluding divestiture impacts and an FDIC assessment benefit. Citigroup returned $2.1 billion to shareholders through dividends and repurchases. Capital ratios (CET1) exceeded regulatory requirements.
