Citigroup Inc’s (NYSE: C) prospects have been hurt by the lack of near-term catalysts and the negative impact of de-globalization, according to Morgan Stanley. The Citigroup Analyst: Betsy Graseck downgraded Citigroup from Equal-Weight to Underweight, while reducing the price target from $75 to $60.
Is Citigroup stock headed to $65?
While Citigroup stock (NYSE: C) has gained around 70% since the March bottom, it is still down 25% YTD. Trefis estimates Citigroup’s valuation to be around $65 per share - around 10% above the current market price.
Why did Citigroup take a $680 million loss in Q4?
In the third quarter, Citigroup took a $680 million pre-tax loss related to the sale of its Australian consumer banking operations. Mason said Q4 would be a bit of an "anomaly" when it comes to the bank's capital return philosophy and share repurchases, specifically citing SA-CCR and the Korea charge.
Is Citigroup pausing share repurchases in the fourth quarter?
Citigroup ( C -2.31%) CFO Mark Mason recently spoke at the Goldman Sachs Financial Services Conference and mentioned at the very end of his Q&A that the bank would be pausing share repurchases in the fourth quarter. That buried comment caught plenty of shareholders off guard, including me.
How did Citigroup’s revenues grow in 2020?
Citigroup reported revenues of $74. 3 billion for the full year 2020 – at the same level as the year-ago period. It was led by the growth in its ICG segment (sales & trading and investment banking businesses), which compensated for the weakness in its core banking revenues.
Why is Citigroup falling?
Citigroup Inc.'s C -1.45% first-quarter profit fell 46%, dragged down by higher expenses and potential losses from its exposure to Russia. Profit fell to $4.31 billion, or $2.02 per share, compared with analysts' forecast for $1.43 per share. A year ago, Citigroup posted a profit of $7.94 billion, or $3.62 per share.
Is Citigroup a good stock to buy now?
Citigroup is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of -41.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -8.5%.
What happened to Citigroup?
In July 2009, the firm was effectively nationalized, with billions of dollars in bailout money converted into a 34% ownership stake for the U.S. government. Citigroup was worth less than $16 billion, having lost more than $250 billion in value from its peak.
Is Citigroup in trouble?
Citibank has been in trouble with regulators, and was fined $400 million by the Federal Reserve and the Office of the Comptroller of the Currency in 2021. The fine was for “unsafe and unsound banking practices,” which included sending around $900 million to the wrong recipients.
Why is Citigroup a buy?
Citigroup (C) has large trading, investment banking, international corporate banking, and credit card operations. Its best-performing business is the Institutional Clients Group, whose commercial banking and capital markets operations have scale and a global footprint that few can replicate.
Is C undervalued?
Once again, C looks incredibly undervalued. Its tangible book value exceeds its market cap and trades at a 1.67x multiple. The market is discounting the tangible book value of C as its market cap trades at $62.33 billion less than its tangible book value.
Is Citibank closing down in USA?
(Reuters) - Citigroup Inc C.N said on Tuesday it will temporarily shutter up to 15% of its U.S. branches amid the coronavirus outbreak.
Is Citibank a good bank?
Is Citibank a good bank? Citibank is a good bank if you're looking for solid full-service banking products and services and access to plenty of fee-free ATMs. If you're looking to earn the best interest rates on your deposits, you may find better rates at an online bank.
Is Citibank owned by China?
As a locally incorporated bank, Citi China's legal name is Citibank (China) Co., Ltd. ("CCCL") and is fully owned by its parent, Citibank N. A. Citigroup Tower, Shanghai.
Will C stock go back up?
Citigroup Inc (NYSE:C) The 24 analysts offering 12-month price forecasts for Citigroup Inc have a median target of 61.50, with a high estimate of 95.00 and a low estimate of 53.00. The median estimate represents a +17.31% increase from the last price of 52.43.
Is Citibank exiting China?
Citigroup Falls as Retail Banking Exit from China and Taiwan Nears.
Is Citigroup an ethical company?
To equip employees to make systemically responsible decisions that are in our clients' interests and create economic value, Citi has championed a series of firm-wide initiatives that promote ethical conduct and enhance our culture. The Ethics and Culture Committee, a standing committee of the Citigroup Inc.
What is Citigroup's earnings per share in 2021?
Currently, analysts expect that Citigroup will report earnings of $9.06 per share in 2021. The company’s earnings are projected to decline to $8.25 per share in 2022, so the stock is trading at less than 9 forward P/E which is cheaper compared to peers like Bank of America or JP Morgan.
How much will Citigroup earnings be in 2021?
Currently, analysts expect that Citigroup will report earnings of $9.06 per share in 2021. The company’s earnings are projected ...
What happens if the Fed reiterates its dovish message?
If Fed reiterates its dovish message, Treasury yields may move lower, which will be bearish for financial stocks. In case Fed hints that it is worried about inflation, markets will start to price in the risks of higher interest rates, which will provide support to financial stocks.
NYSE: C
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Citigroup has temporarily halted stock buybacks in Q4, catching shareholders by surprise
Citigroup ( C 2.64% ) CFO Mark Mason recently spoke at the Goldman Sachs Financial Services Conference and mentioned at the very end of his Q&A that the bank would be pausing share repurchases in the fourth quarter. That buried comment caught plenty of shareholders off guard, including me.
Citigroup needs to account for SA-CCR
Banks are complex companies and have many rules regarding how much capital they must hold in reserve for all of their operations that could result in losses (loans, for example).
What now?
The paused share repurchases are disappointing, not only because I had just recently purchased call options after Citigroup's pull back into the low $60s, but also because it looks like management either didn't do a great job of capital planning or didn't effectively communicate this with shareholders.
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How much has Citigroup lost in 2019?
Citigroup stock (NYSE: C) lost more than 55% – dropping from $79 at the end of 2019 to around $35 in late March – then spiked 46% to around $52 now. Despite this, the stock has lost 34% of its value so far this year.
How much is Citigroup's revenue in 2020?
Citigroup reported revenues of $74.3 billion for the full year 2020 – at the same level as the year-ago period. It was led by the growth in its ICG segment (sales & trading and investment banking businesses), which compensated for the weakness in its core banking revenues. We expect the core banking revenues to continue to suffer in FY2021, due to the lower interest rate environment and the negative impact of the Covid-19 crisis on consumer demand. Further, the sales & trading and investment banking revenues are expected to normalize in the subsequent quarters. This is likely to restrict Citigroup’s revenues to around $70.3 billion in FY 2021 – down by 5% y-o-y.
What is Citigroup's EPS for 2020?
The earnings figure suffered in 2020, due to the sizable build-up in provisions for credit losses to counter the risk of loan defaults on the bank’s loan portfolio – EPS down 39% y-o-y to $4.87. The risk of loan default is tied to the economic slowdown. As the economic conditions improve, the financial health of the customers is likely to recover, reducing the risk of loan defaults and boosting Citigroup’s profitability. We expect the EPS figure to remain around $6.88 in FY2021. Additionally, the bank is likely to start its share repurchase program from the first quarter of 2021. Overall, the EPS of $6.88 coupled with the P/E multiple of just above 11x will lead to a valuation of around $78.
Who is the CEO of Citigroup?
Jane Fraser took over as CEO of Citigroup ( NYSE:C) in March, and she's not wasting any time making her mark on the giant financial institution.
Where is Citigroup banking located?
With its exit from those laggard markets, Citigroup will refocus its consumer banking presence in Asia, Europe, the Middle East, and Africa around four wealth centers: Singapore, Hong Kong, the United Arab Emirates, and London.
How many countries does Citigroup operate in?
Citigroup does business in more than 160 countries and jurisdictions. This has required the bank to deal with an array of different nations' regulations, central banks, and interest rates, and a host of geopolitical risks as well.
How many markets are there in 2020?
Furthermore, the 13 markets are not making enough revenue to justify their expense base. The efficiency ratio (expenses expressed as a percentage of revenue, so lower is better) of the 13 markets together in 2020 was 77%, compared to an efficiency ratio of 57% for Citigroup's overall global consumer banking business.
Is Citigroup merging its wealth management business with its private bank business?
Since Fraser has taken the reins at Citigroup, she has expressed particular excitement about its wealth management business, especially regarding its growth potential in Asia. A few months ago, Citigroup announced that it will combine its consumer wealth management and its private bank business for institutional clients group into one business unit, which will make it easier to analyze for investors. I am not sure about the specific returns in Citigroup's wealth business right now, but I imagine they are considerably better than the returns the bank made in its consumer franchise in the 13 markets it plans to exit.
Is Citigroup going to exit the Philippines?
Citigroup plans to wind down or sell its consumer banking franchises in Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam. However, the bank is not exiting these countries altogether.
Is Citigroup still lagged?
However, they still lagged the performance of Citigroup's total consumer banking divisions in North America, Latin America, and Asia, all of which managed to make at least some money. CFO Mark Mason noted that the cost of credit nearly doubled in those 13 markets in 2020.
The stock is trading at a beaten-down level, and there's a transformation plan starting to get underway
Bram Berkowitz mainly writes in the financials bureau covering the banking sector. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group.
Key Points
Citigroup, a bank that owns 4% of U.S. deposit market share, trades around 80% of tangible book value.
3 concerns
Exiting consumer markets: Fraser's first big move came earlier this year when the bank announced its plans to exit or sell its consumer banking franchise in 13 global markets to free up about $7 billion of capital. Investors seemed to like the concept, but the first two markets Citigroup has left have not exactly been smooth.
3 near-term catalysts
Q4 earnings: Every earnings report will be important for Citigroup right now. The next one will be in January to discuss the fourth quarter and full-year results. Investors will be looking for more guidance for next year, any hints on the transformation plan, and to see how much stock Citigroup is repurchasing.
3 reasons to buy the stock
Beaten down: Despite concerns, Citigroup is a rare opportunity to buy one of the largest banks in the world with more than 4% of U.S. deposit market share and an established moat in investment banking and credit card lending at a beaten-down level.
