Citi(US:C) Youtube·2025-12-22 23:04Core Viewpoint - City shares have increased nearly 3%, reaching levels not seen in over 17 years, with expectations of being the top performer among big banks next year [1] Group 1: Company Performance and Strategy - City is undergoing a multi-year turnaround, simplifying its business and exiting certain countries, which is expected to improve its return on equity (ROE) from a bottom-tier position to average [2] - The stock has performed well this year, breaking through tangible book value, which has historically been a ceiling for the last 10 to 15 years [2] - Earnings revisions for the largest banks have increased by 16% year-on-year, which is double that of smaller banks, indicating strong performance for larger institutions like City [4] Group 2: Market Expectations and Valuation - Expectations for capital return have risen by approximately 30% compared to the previous year, with an additional 100 to 200 basis points of excess capital yet to be factored into projections [3] - The potential for City’s stock price to increase by 65% to 70% is discussed, although this is considered aggressive; a more conservative estimate suggests a significant upside remains [5] - City’s target for next year is a return of 10% to 11%, with an important investor day scheduled for May 7, where medium-term targets are expected to be discussed [6][7] Group 3: Competitive Landscape - The regional banks are viewed selectively, with a focus on those building competitive companies through acquisitions, although historical performance suggests that stocks may not necessarily outperform during this process [8] - Citizens Bank is highlighted as a strong investment opportunity due to its expected ROE improvement from 10% to 15-16% over time, alongside capital markets exposure [9][10] - The largest banks, including JP Morgan and Goldman Sachs, have strong international components, with capital markets tailwinds being robust globally, while City is positioned as an international player [12]