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Turnaround At Citigroup

|Includes:Citigroup Inc. (C)

Turnaround at Citigroup

Citigroup beat earnings at $1.09 compare to 98 cents compared to some analysts estimates for the third quarter of 2012. The biggest change of the third quarter the Government of China allowed Citigroup to become the first western major financial institution have credit cards for the Chinese consumers. Operating expenses went down by 3%. Delinquencies on mortgages and credit cards went last quarter. Considering last year 2012 Credit Card Delinquencies declined from 1.78% (2,622 billion) to 1.47% (2,142 billion). Also first mortgage Delinquencies from 30 days to 180 days was also lowered also from 11.36% to 6.77%. The result from selling some their credit cards, mortgages to other companies to reduce the exposure losses from consumers. Majority of Citigroup growth comes from expansion resulting of international markets in the growing economies of Asia, and Latin America. The potential of the middle class of the regions of Asia and Latin America from shadow banking services to traditional banking services will lead to higher income in the future. Current operations are still effected from the European financial crises. All major international financial institutions still face some problems the lack of cooperation from the European governments for assistance other members of the European currency. The turnaround of Citigroup will take time but the investors must be patient for increased revenue in the future. Finally, European financial crisis of Portugal, Italy, Ireland, Portugal, Spain, and Greece has not come any form of a conclusion.

I am long on Citigroup (NYSE:C) and Citigroup Warrants B ( C-WTB)

Sources Cited:

Citigroup. Citi Third Quarter 2012 Earnings Review, Press Release, Financial Supplement (PDF), Financial Supplement (Excel), Presentation Webcast Replay. October 15, 2012 Citigroup Investor Relations. www.citigroup.com/citi/investor/overview.html

Disclosure: I am long CWSB, C.

Stocks: C