Seeking Alpha

Citigroup Inc. (C)

  • Tue, Apr. 21, 1:52 AM
    • The U.S. Department of Justice is now pushing for five banks, including JPMorgan (NYSE:JPM), Barclays (NYSE:BCS), Citigroup (NYSE:C), RBS (NYSE:RBS) and UBS (NYSE:UBS), to reach a joint mega settlement to allegations they manipulated the foreign exchange markets.
    • The deal would see some institutions pay about $1B each and is scheduled for mid-May, FT reports.
    • Last November, the banks (except Barclays) agreed to pay $4.3B to authorities in the U.S., U.K. and Switzerland in the first settlements announced in the forex investigation, although the DOJ was not included on that ticket.
  • Fri, Apr. 17, 3:45 PM
    • In the sort of things dreams are made of for retailers, Costco's (COST -1.7%) new deal with Visa (V -1.6%) and Citigroup (C -1.6%) will have the company paying next to nothing for transactions vs. the roughly 0.6% it pays current partner American Express (AXP -4.2%).
    • "The numbers didn't add up," said AmEx CEO Ken Chenault last month when telling his shareholders why the company let the Costco relationship go. "We couldn't accept their financial terms."
    • For Citigroup, it's plan is to make money by customers carrying loan balances, and for Visa it hopes to earn when customers use those cards at other retailers where fees are higher. Banks generally make about 80% of their credit card revenue from interest balances and other fees, with interchange making up the rest, according to Bernstein's Lisa Ellis.
    • To put some numbers on it, Costco had about $100B in sales last year, with its customers accounting for 20% of AmEx's loans and 8% of spending.
  • Fri, Apr. 17, 12:01 PM
    • Head of a desk trading mortgage-related debt at Citigroup (C -1.2%), Ilker Ertas has reportedly resigned this week to take up a position with mREIT giant Annaly Capital (NLY).
    • Ertas' exit would follow the departure of Stefan D'Annibale - head of Treasury and agency trading - who joined a hedge fund, and the resignation of long-bond trader Joseph Leary.
  • Thu, Apr. 16, 12:15 PM
    • Citigroup (C +1.8%) beat Q1 estimates on the bottom line, writes Maureen Farrell, despite a reserve release that was less than some had expected. KBW, for one, expected a release of $325M for the Q, but Citi only released $202M.
    • Asked about the crash in the oil price, CFO John Gerspach isn't worried, noting commodities is a small part of the bank's overall business and performed well during Q1. Deterioration in the oil & gas companies Citi work with has been only "minor."
    • Citigroup is "the big turnaround story for the large-cap banks," says RBC's Gerard Cassidy, noting Citi delivered on lower expenses. The stock, he says, remains very attractive on a valuation basis and the Q1 results are further evidence of management's progress.
    • Earnings call slides
    • Previously: Citigroup beats by $0.13, misses on revenue (April 16)
    • Previously: Citigroup +2.1% after cruising past estimates (April 16)
    | 1 Comment
  • Thu, Apr. 16, 8:13 AM
    • Excluding CVA/DVA adjustments and a tax item from last year, Q1 EPS of $1.52 per share vs. $1.30 one year ago.
    • CET1 Ratio of 11% up 40 bps during quarter as Citi Holdings is able to utilize $1.2B of its DTA. Tangible book value per share of $57.66 up from $56.71 at start of year.
    • Global Consumer Banking net income of $1.73B up 4% Y/Y, on revenue of $4.552B down 7%. Net credit losses of $1.551B down 10%. Loan loss release of $114M down 47%.
    • Institutional Clients Group adjusted net income of $2.972B up 2% on revenue of $9.028B down 1%. Fixed income markets revenue of $3.483B down 11%. Total Markets & Securities Services revenue of $4.805B down 6%.
    • Citi Holdings adjusted net income of $149M vs. a loss of $292M one year ago. Net credit losses of $408M vs. $573M. Loan loss release of $201M vs. $350M. Assets in Citi Holdings of $122B down 5% Q/Q, down 19% Y/Y.
    • Conference call at 11 ET
    • Previously: Citigroup beats by $0.13, misses on revenue (April 16)
    • C +2.1% premarket
  • Thu, Apr. 16, 8:01 AM
    • Citigroup (NYSE:C): Q1 EPS (Excl. CVA/DVA) of $1.52 beats by $0.13.
    • Revenue  (Excl. CVA/DVA) of $19.81B (-1.5% Y/Y) misses by $10M.
    • Shares +1.9% PM.
    • Press Release
  • Wed, Apr. 15, 5:30 PM
  • Tue, Apr. 14, 7:41 AM
    • Part of an effort to streamline its currency operation (Citi is the biggest player in the forex industry) - which has already included staff cuts and implementation of automation - Citigroup (NYSE:C) has put CitiFX Pro on the block, reports Reuters.
    • The operation serves individual traders all the way up to smaller institutional players.
    • The sale could be coming at a good time as the return of volatility in currencies has many thinking about stepping up their investment in the area.
    • The industry, of course, suffered a black eye amid the whole SNB revaluation earlier this year.
    • Previously: Citi reportedly loses more than $150M on Swiss franc move (Jan. 16)
    • Previously: Blow-up: FXCM craters after Swiss franc-related losses (Jan. 16)
  • Mon, Apr. 13, 12:50 PM
    • Asia-Pacific boss Stephen Bird will replace departing consumer banking chief Manual Medina-Mora, who's retiring on June 1 - his exit hastened by the blow-up at Banamex, where he's chairman.
    • Bird has been with Citigroup (C +0.8%) for 17 years - most of it in Asia - and had been considered a leading contender for the consumer banking job.
    • Francisco Aristeguieta, head of the bank's Latin American operations, will relocate from Miami to Hong Kong to replace Bird, and Jane Fraser - who heads the bank's global mortgage unit along with U.S. consumer and commercial banking - will move to Miami to take over for Aristeguieta.
    • Source: WSJ
    • Previously: Citigroup consumer banking chief out (Feb. 20)
    • Previously: Citigroup cleans house at Banamex (Oct. 27, 2014)
  • Mon, Apr. 13, 9:51 AM
    • Citigroup (C +0.6%) may take a $2B-plus hit to book value thanks to the greenback's strength, says Deutsche Bank, though income and capital will not be materially affected.
    • The team notes the strong dollar hit Citi's book value by $3.8B in 2014, with half of that impact coming in Q4. Net income suffered just $400M.
    • Deutsche, nevertheless, reiterates its Buy rating and $56 price target.
  • Thu, Apr. 9, 3:00 PM
    • "Our license in Cuba is active," says Francisco Aristeguieta, CEO of Citigroup's (NYSE:C) Latin American operations. "We have had it for 54 years, it never expired. And we are evidently evaluating our return to Cuba."
    • It's not happening anytime soon though, he adds, "for any number of political reasons."
    • Aristeguieta spoke at a forum ahead of the Summit of the Americas in Panama, where leaders - including President Obama and Raul Castro - will meet starting tomorrow.
  • Wed, Apr. 8, 12:10 PM
  • Mon, Apr. 6, 3:00 PM
    • "There will be an inspection of Citibank Argentina (NYSE:C) today to ensure it is functioning," says an Argentine central bank spokesman after regulators entered Citi's HQ in the country.
    • At issue is Argentina's position that Citibank Argentina violated the country's laws by striking a deal with hedge funds over the country's defaulted debt. Citi has since been suspended from conduction capital market operations and its CEO in the country stripped of his authority.
    • Source: Reuters
  • Thu, Apr. 2, 4:15 PM
    • While the DOJ wants Citigroup's (NYSE:C) main banking subsidiary - Citibank - to plead guilty, reports Bloomberg, Citi has countered, offering that plea from a smaller unit.
    • An agreement could come as soon as next month, and is likely to include a fine of nearly $1B.
    • At issue for Citi: A guilty plea from Ciitbank might hinder its ability to operate certain types of businesses (Citibank accounted for 70% of Citigroup revenue in 2014). The DOJ, on the other hand, wants guilty pleas from important entities within banks, and one from Citibank would be a rather large scalp to hang on the wall at DOJ headquarters.
  • Wed, Apr. 1, 4:33 PM
    • Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
    • The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
    • FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
    • Source: WSJ
    • Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
  • Wed, Apr. 1, 1:08 PM
    • Based in Burlington, VT, Prime Reinsurance was created five years ago as part of the spinoff of Primerica, and Bloomberg is reporting the business as about to go on the block. No valuation estimate is available, but the operation had about $7B in assets as of Sept. 30.
    • Among reinsurance names which may have interest could be Reinsurance Group of America (NYSE:RGA), suggests the story.
    • A sale would be the latest in a line of dispositions from Citigroup (C -0.1%) boss Michael Corbat as he aims to simplify the bank's operations, and the recent pickup in reinsurance M&A might make this a good time to make a move.
    • Previously: Endurance Specialty the winner in Montpelier Re bidding (March 31)
    • Previously: RenaissanceRe buying Platinum Underwriters for $1.9B (Nov. 24, 2014)
    | 1 Comment
Visit Seeking Alpha's
C vs. ETF Alternatives
Company Description
Citigroup Inc is a financial services holding company. It provides financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
Sector: Financial
Country: United States