Citigroup higher after beating estimates


Revenue of $20.1B declined 2% from a year earlier, when excluding CVA/DVA adjustments. Net income of $3.9B gained 4%. Operating expenses of $12.1B fell 1% (they included legal costs of $945M vs. $710M a year ago). Loan loss allowance of $18.9B, or 2.87% of total loans vs. $23.7B, or 3.7% of total loans a year ago.

Book value per share of $66.25 up 6% from a year ago. TBVPS of $56.40 up 8%. Basel III Tier 1 Common Ratio of 10.4% up from 9.3% a year ago. CEO Corbat: "Very cognizant of our shareholders desire to see a sustainable return of capital, we are engaged with the Fed to better understand their expectations regarding the CCAR process."

Citicorp revenue fell 5% Y/Y when excluding CVA/DVA adjustments, and net income fell 8%. As expected, it was another rough quarter for fixed income, with revenue of $3.85B off 18% Y/Y.

Citi Holdings net loss of $284M compared to loss of $804M a year ago as improving housing conditions pushed net credit losses down by 44%. Allowance for credit losses of $6.1B, or 6.76% of loans compares to $9.4B or 8.73% of loans a year ago. Assets of $114B fell 23% Y/Y and now represent just 6% of total Citigroup assets.

CC at 11 ET

C +3.6% premarket

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Comments (8)
  • bbro
    , contributor
    Comments (11216) | Send Message
     
    170 billion dollars of Tangible Common Equity vs 30 billion dollars of TCE at the end of 2008....
    14 Apr 2014, 08:21 AM Reply Like
  • june1234
    , contributor
    Comments (4349) | Send Message
     
    Thats what I like about America. revenue fell 5% Y/Y , net income fell 8%, fixed income rev fell 18% Y/Y. Stock up 3.6%
    14 Apr 2014, 08:22 AM Reply Like
  • pmiller100
    , contributor
    Comments (358) | Send Message
     
    Shouldn't look at one day's price action in a vacuum. C shares have gotten hammered recently, and was priced for worse earnings.
    14 Apr 2014, 08:34 AM Reply Like
  • june1234
    , contributor
    Comments (4349) | Send Message
     
    If you can't beat posting those numbers in our priced for worse earnings world or not as bad as expected , you are incompetent
    14 Apr 2014, 09:03 AM Reply Like
  • jstratt
    , contributor
    Comments (3928) | Send Message
     
    My guess is that C should have kept their allowance reserves rather than recognizing them as profits.

     

    The real positive is that 3rd world issues apparently havent severely affected C profits.
    14 Apr 2014, 08:26 AM Reply Like
  • Prmamu
    , contributor
    Comments (109) | Send Message
     
    Any way you look at it, this is a great quarter. Especially when compared to estimates and JPM. citi is doing something right and I expect will soon break above $50
    14 Apr 2014, 08:53 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11168) | Send Message
     
    In before the people who claim C is still a $5 stock.
    14 Apr 2014, 09:39 AM Reply Like
  • gussieboy
    , contributor
    Comments (32) | Send Message
     
    No doubt this is probably the biggest positive surprise from C in 13 years. Could it be that they have finally turned the big ship around? After years of poor management, maybe Corbett is the right guy. Must still get rid of the rubin stain that has haunted them so long.
    14 Apr 2014, 11:04 AM Reply Like
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