Andrew and Ben give us the low down on Citigroup's (NYSE:C) activity in recent years.
Michael Corbat was brought in to figure out what to do with Citi Holding's "junk" money. This is the portion of Citigroup that is not considered apart of their core business. He later took the CEO spot over the core banking business.
Trying to become smaller and focusing on your most profitable sectors while expanding globally is pretty counterintuitive. Senior Equity Analyst Ben Nye has two go to metrics that he believes can show Citigroup's progress toward achieving both of these goals. According to his research, Citigroup is on par with the other top banks, despite having less in assets and reaching more globally.
This global move could potentially hedge them against U.S. market risk. Citigroup is a head scratcher but like most things, there are pros and cons. We have come out with a more positive outlook. We will continue to hold the stock as we see no seriously negative downside.
Disclosure: I am/we are long C.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.