The financial sector is often seen as a bellwether for the overall economy, and right now, it’s sending out healthy signals. As expectations for a soft landing of the U.S. economy increase, financial stocks are on investors’ radars. Additionally, improving consumer sentiment levels and a resilient housing market are also contributing to a favorable environment for financial stocks.In this article, we’ll take a closer look at three financial stocks that could continue to do well in the coming months, includi ...

VV Shots Citigroup (NYSE:C) has been the clear laggard of the big U.S. banks since the Financial Crisis. It was a poorly constructed collection of businesses, run inefficiently for decades. With that said, there have been opportunities to make a lot of money in the stock by buying at sizeable discounts to tangible book value, while prices close to tangible book value have made for good selling prices. There is hope that Citigroup's management team is on the right track and finally should start hitting the i ...

Monday, April 15th, 2024A new trading week starts with pertinent content. Not only does Q1 earnings season pick up following Friday morning’s release of earnings data from big banks like JPMorgan (JPM) and Citigroup (C) , but we also see new inflation metrics hitting the tape. The immediate takeaway is that pre-market futures are rather pleased with these outcomes, with the Dow moving from +230 points to +324, the S&P 500 from +31 to +42 and the Nasdaq from +127 points to +165 points. Meanwhile, bond yields ...

Key TakeawaysJPMorgan Chase, Citigroup, and Wells Fargo reported first-quarter results Friday—all three posted lower net interest income.However, these banks' earnings all increased from the fourth quarter as investment banking and trading revenue surged.Each big bank reduced the amount it set aside for potential credit losses, although average loan balances fell slightly. Large U.S. banks kicked off the first-quarter earnings report season by disclosing higher-than-expected profits. But their net interest ...

The market isn’t particularly impressed with what it saw in the quarterly releases from JPMorgan (JPM) , Citigroup (C) , and even Wells Fargo (WFC) . Part of the issue appears to be underwhelming guidance, particularly from JPMorgan, that most analysts saw as overly conservative.We see the Q1 results from these three major banks as good enough; not great, but definitely not bad either. There were no major surprises from either of the three banks. In our view, the likely explanation for the market’s tentativ ...

April 12, 2024 Earnings Results Presentation Our strategy and path forward remains unchanged ...

Financial Data and Key Metrics Changes - The company reported net income of approximately $3.4 billion, earnings per share of $1.58, and a return on tangible common equity (RoTCE) of 7.6% on over $21 billion of revenues [11][19][18] - Total revenues were down 2% on a reported basis, but up more than 3% year-over-year when excluding divestiture-related impacts [19][12] - Expenses were $14.2 billion, up 7% on a reported basis, with a significant portion attributed to restructuring charges and inflation [19][20] Business Line Data and Key Metrics Changes - Services revenue increased by 8% for the quarter, with fees up 10% year-over-year, driven by new mandates and deepened client relationships [12][30] - Markets revenues decreased by 7%, primarily due to lower fixed income revenues, while equities showed a 5% increase [33][12] - Investment banking revenue grew by 35%, with overall banking revenue growth at 49%, driven by strong performance in debt capital markets (DCM) and equity capital markets (ECM) [14][35] Market Data and Key Metrics Changes - In the U.S., corporate sentiment is positive, and clients have sound balance sheets, contributing to a favorable environment for investment banking [15][62] - The company noted a bifurcation in Europe, with Germany facing weak demand while southern European countries like Spain and Greece are experiencing stronger service demand [6][7] Company Strategy and Development Direction - The company is focused on transformation and performance improvement, having completed its organizational simplification, which is expected to enhance client experience and operational efficiency [8][9] - The strategy includes right-sizing the workforce and exiting non-core businesses, with an aim to generate $2 billion to $2.5 billion in cumulative annualized run rate savings [10][9] - The company aims to achieve medium-term return targets of 11% to 12% through improved efficiency and client-centric operations [44][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a soft landing in the U.S. economy and noted that global growth is expected to slow in many markets [6][7] - The company is committed to executing its transformation strategy and enhancing business performance, despite potential bumps in the road [18][44] - Management highlighted the importance of maintaining a strong balance sheet and capital position, with a CET1 ratio of 13.5% [18][29] Other Important Information - The company returned $1.5 billion in capital to shareholders, including $500 million through share buybacks [18][29] - The company is actively managing its balance sheet, maintaining a strong $2.4 trillion high-quality balance sheet with a diversified deposit base [25][26] Q&A Session Summary Question: Are the changes in reporting lines reflective of actual operational changes? - Management confirmed that the organizational simplification has led to significant changes in how the bank operates, increasing transparency and accountability [46][47] Question: What are the growth drivers for revenue in the medium term? - Management outlined a focus on maintaining leadership in certain businesses, gaining market share, and leveraging strong client relationships to drive revenue growth [54][55] Question: How will the company manage expenses in a softer revenue environment? - Management indicated that there is flexibility in the expense range, allowing for adjustments based on revenue performance while ensuring continued investment in transformation [71][72] Question: What is the outlook for capital returns and buybacks? - Management noted that the company is well above regulatory capital requirements and indicated potential for increased buyback activity in the future [75]

Citigroup’s latest results took note of continued spending on credit cards but there were some notes of caution in the mix.The earnings materials detailed that branded card-related volumes were 4% higher year on year in the March period, to just under $121 billion. End of period loans were 11% higher on those branded cards.The company’s organization revamp is largely complete, CEO Jane Fraser said, who added that “we are intensifying our efforts such as automating certain regulatory processes and the data r ...

We complete our inflation summary this week with new data out this morning. Import and Export Prices for March help articulate some of the other economic data we’ve seen throughout this week, including that which sent trading markets into a tailspin mid-week. Pre-market futures, paring losses on Q1 results from some of Wall Street’s biggest banks (see below), were sent back southward on today’s Imports and Exports: -220 points on the Dow, -35 on the S&P 500 and -150 for the Nasdaq.Import Prices came in hott ...

Citigroup Inc.’s (C) first-quarter 2024 net income from continuing operations per share of $1.58 surpassed the Zacks Consensus Estimate of $1.13. However, the metric declined 28% from the year-ago quarter.Shares of C have gained 1.8% in the pre-market trading on a higher-than-expected quarterly performance.However, it witnessed declines in total loans and deposits in the quarter. Also, a decline in revenues and deteriorating credit quality are near-term woes.Net income for the quarter was $3.37 billion, dow ...