Citigroup reports a profit in the fourth quarter, exceeding expectations on the strength of its investment banking division.

Its fourth-quarter earnings were reported Wednesday morning, surpassing expectations on both the top and bottom lines.

Shares of the bank rose more than 2% in premarket trading.

Here is how the company did relative to LSEG analyst consensus estimates:

• Earnings: $1.34 a share, vs $1.22 expected
• Revenue: $19.58 billion, vs $19.49 billion expected

Citi's net income for the quarter was $2.86 billion, an improvement from a net loss of $1.84 billion in the same quarter a year ago. However, year-over-year comparisons for fourth quarter income metrics may be complicated by charges Citi booked in the final period of 2023.

During the fourth quarter, the bank experienced growth in various business units. Notably, investment banking experienced a 35% increase in revenue year over year. This led to a 12% growth in total banking revenue, which expanded to 27% when factoring in the impact of loan hedges.

The revenue of fixed income markets jumped 36% year over year, exceeding analysts' projections of $2.95 billion by $530 million. Citi attributed the growth to the continued momentum in the issuance of investment grade corporate debt.

The revenue for the wealth and services units increased by 20% and 15%, respectively, compared to the previous year.

In 2024, our strategy is delivering as intended and driving stronger performance in our businesses. Our net income was up nearly 40% to $12.7 billion and we exceeded our full-year revenue target, including record years in Services, Wealth and U.S. Personal Banking, as CEO Jane Fraser stated in a press release.

During the analyst call on Wednesday, investors will seek updates on Fraser's efforts to revive the bank, which began in March 2021 with a focus on streamlining the company by selling off international units.

In 2024, Citi's stock was a strong performer, rising nearly 37% on the year. As of Wednesday, the stock had risen more than 4%.