Citigroup (C, $68.80) to focus on investment banking business as Q1 shows positive results
Citigroup Inc. reported estimate-beating results on Monday as its investment banking business grew, and the company expanded its net-interest margin. Analysts believe that a reduction in tax rate to 21% is responsible for Citi’s improvement from a year ago.
However, the bank’s income from continuing operations declined slightly, partly due to divestiture last year. But the bank is striving to increase its digital capabilities to attract deposits domestically despite its light presence in U.S. branch network. Citi’s North American deposits edged up 1% but its international consumer deposits rose 3% during the quarter, indicating that the bank is growing deposits faster abroad than in the U.S.
Other key developments include an improved 11.9% return on average tangible common shareholder’s equity, $5.1 billion return in capital to shareholders, a 20% rise in investment banking revenue to $1.4 billion, total loans by assets rose 3% to $682.3 billion, deposits grew by 5% to $1.03 trillion, and net-interest margin expanded by 8 bps to 2.72% in the current quarter and total operating expenses fell 3% to $10.58 billion.
But there were setbacks too. A 24% drop in equities trading impacted Citi’s overall revenue which fell 2% to $18.58 billion and revenue from the bank’s largest business consumer banking was flat at $8.5 billion largely owing to weakness in the Asia region.
The bank is still optimistic that an absence of an interest rate hike, as signaled by the Federal Reserve, would not negatively impact the overall results of the year.
C in upward trend: price may ascend as a result of having broken its lower Bollinger Band on December 18, 2024
C may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 34 cases where C's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 234 cases where C Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for C moved out of overbought territory on December 11, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where C's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on C as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for C turned negative on December 11, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where C declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.647) is normal, around the industry mean (0.958). C has a moderately high P/E Ratio (15.708) as compared to the industry average of (8.937). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (2.643). Dividend Yield (0.033) settles around the average of (0.054) among similar stocks. P/S Ratio (1.581) is also within normal values, averaging (2.460).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. C’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. C’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock worse than average.
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General Information
a financial conglomerate
Industry MajorBanks