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.
The RSI Oscillator for C moved out of oversold territory on April 17, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 35 similar instances when the indicator left oversold territory. In of the 35 cases the stock moved higher. This puts the odds of a move higher at .
The Moving Average Convergence Divergence (MACD) for C just turned positive on April 24, 2024. Looking at past instances where C's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
C moved above its 50-day moving average on April 17, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .
C may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 240 cases where C Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on May 07, 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 .
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 (0.945). C has a moderately high P/E Ratio (15.708) as compared to the industry average of (8.857). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (2.584). Dividend Yield (0.033) settles around the average of (0.100) among similar stocks. P/S Ratio (1.581) is also within normal values, averaging (2.430).
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 60, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a financial conglomerate
Industry MajorBanks