Citi(US:C) 智通财经网·2025-06-30 08:11Core Viewpoint - Citigroup is currently the lowest valued among major U.S. banks based on price-to-book ratio, primarily due to structural factors that have led to its long-term undervaluation compared to peers [1][3] Valuation and Performance - Citigroup's stock has significantly outperformed the overall market, with a total return exceeding 82% including dividends, compared to a 55% increase in the S&P 500 during the same period [1] - The current trading price of Citigroup is approximately 0.81 times its book value, while competitors like JPMorgan Chase and Bank of America have much higher multiples, with JPMorgan at 2.4 times [3] Business Structure and Profitability - Citigroup has a larger exposure to international markets and higher-risk banking products compared to peers, which contributes to its lower profitability and valuation [3] - The bank's return on equity (ROE) was only 8% in Q1 2025, significantly lower than JPMorgan's 18%, indicating weaker profitability [3] - Citigroup's dividend yield is currently around 2.65%, less attractive compared to the industry average of 3.15%, and down from over 4% previously [3][4] Operational Performance - In Q1 2025, Citigroup reported revenues of $21.6 billion, a 3% year-over-year increase, with record revenues in personal banking and wealth management [6] - The bank's efficiency ratio improved by 490 basis points year-over-year to 62%, aligning with its mid-term target of maintaining efficiency between 60-63% [6] - Credit costs exceeded $2.7 billion, a 15% increase year-over-year, indicating ongoing challenges in asset quality [6] Capital and Risk Management - Citigroup's net profit for the quarter was $4.1 billion, a 21% increase, with a tangible common equity return (RoTE) of 9.1%, still below its mid-term target of 11%-12% [7] - The bank's common equity tier 1 (CET1) capital ratio stood at 13.4%, well above regulatory requirements, indicating a strong capital position [7] - In the recent stress tests, Citigroup reported a minimum CET1 ratio of 10.4% under adverse scenarios, reflecting a higher risk profile compared to peers [8] Future Outlook - Analysts believe that as Citigroup continues to improve its business structure and reduce overall risk, the valuation gap with peers may narrow, positioning it as an interesting "value stock" in the U.S. banking sector [9]