How Citigroup Is Pushing for an Expanded Balance Sheet

Citigroup’s (C) balance sheet is expanding at a faster pace thanks to rising deposits and trading assets, as well as its asset management business. The bank is aiming to strengthen its ROE (return on equity) by improving its performance and reducing its number of shares outstanding by engaging in repurchases. Its ROE fell to -36.3% in 4Q17 from 6.2% in 4Q16, mainly due to $22 billion in non-cash provisional tax related to the Tax Cuts and Jobs Act. In 4Q17, Citigroup’s deposits and loans grew 3.0% and 7.0%, respectively, to $960 billion and $667 billion.