- The good news on Citigroup's (C -0.7%) exposure to weakening emerging markets might be that it's already reflected in the stock price - off 5% YTD vs. JPMorgan -1%, Wells Fargo +1.3%, and BofA +7.1%.
- Over 40% of Citicorp revenue and earnings came from EM in 2013, says JPMorgan's Vivek Juneja, so expect declining revenues from slower EM trading activity, lower underwriting volumes, and weaker investment sale fees.
- If the weakness persists, says Juneja, you can throw in boosted credit losses as creating a further hit. Loan loss reserves at Citicorp are at currently at a relatively low level of 2.29%.
Citi bet on emerging markets not paying off
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