Citigroup Stock Outperforms S&P500 in 2023

Citigroup's stock (NYSE: C) has recorded an 18% increase year-to-date, surpassing the S&P 500's 14% rise during the same timeframe. However, the stock has remained relatively stagnant, hovering around $60 since early January 2021, while the S&P 500 has surged approximately 45% over the past three years. Citigroup's returns have been inconsistent, with declines of 2% in 2021 and 25% in 2022, followed by a modest recovery of 14% in 2023. In contrast, the S&P 500 has shown stronger performance, with returns of 27% in 2021, a drop of 19% in 2022, and a rebound of 24% in 2023. The Trefis High Quality Portfolio, which includes 30 stocks, has consistently outperformed the S&P 500 over the same period, raising questions about Citigroup's future performance. Analysts are concerned that the current macroeconomic environment, characterized by high oil prices and elevated interest rates, may lead to a repeat of Citigroup's previous underperformance in the coming year. Despite these challenges, Citigroup reported total revenues of $20.14 billion, reflecting a 4% year-over-year increase. This growth was fueled by a 6% rise in sales and trading, a 3% increase in services, and a significant 38% jump in the investment banking division. However, the bank also faced a 27% rise in provisions, totaling $4.84 billion, alongside a 3% increase in operating expenses, indicating ongoing financial pressures.