Will Citigroup Recover in 2022?
It's been a dreadful year for Citigroup (NYSE: C) in terms of stock price performance, with shares of the megabank down about 1% this year. The KBW Nasdaq Bank Index, which tracks large bank stocks, is up nearly 35% this year, showing just how much Citigroup has lagged the broader sector. Trading at beaten-down levels, can Citigroup turn it around in 2022? Let's take a look.
Citigroup came into 2021 facing several challenges. The bank, which has lagged its peers since the Great Recession, got into trouble in 2020 when it accidentally sent $900 million to the wrong parties due to a clerical error, which showed the lack of modernization at the bank. Later in the year, regulators hit Citigroup with a $400 million fine and a cease-and-desist order, tasking management with fixing long-standing deficiencies related to internal controls regarding compliance, data, and risk management. Citigroup's CEO at the time, Michael Corbat, also announced his retirement in 2020, surprising many who thought he had a few years left to go.
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