National Bank of Greece (NBG) is a Greece-based financial institution offering a range of integrated financial services, including corporate and investment banking, retail banking (including mortgage lending), leasing, stock brokerage, asset management and venture capital, insurance, real estate and consulting services. In addition, the Company is involved in various other businesses, including hotel and property management, real estate and information technology (IT) consulting. As at September 30, 2011, the Bank’s branch and ATM network in Greece is comprised of 558 domestic banking units and 1,426 ATM’s, throughout the country. It is developing and expanding alternative distribution channels for its products, such as mobile and Internet banking. After acquisitions in SE Europe, the Bank’s network overseas includes 1,144 units.

Source: Reuters.com, SEC Filings.

Investment Highlights

NBG’s American Depositary Shares (ADSs) traded higher on Thursday, joining other Greek banks boosted by the resumption of talks on a debt swap to avert a Greek default in Athens. Over 2.90 million shares exchanged hands during the session, versus the 10-day average of 1.45 million.

Bloomberg, which cited a report by Greek newspaper Kathimerini, reported that Charles Dallara, the managing director of the Washington-based Institute of International Finance, representing Greece’s private creditors, will propose that new bonds issued as part of a debt exchange should carry an average coupon of 3.75% when he resumes Athens talks with Prime Minister Lucas Papademos.

NBG’s ADSs added $0.36, or 13.0%, to close at $3.13, extending gains into a second day. Over the past 52 weeks,  shares have traded between $1.64  and $11.85.  Market capitalization currently stands at 14.96 billion and it has 4.78 billion outstanding shares.

Earlier this month, NBG announced that it has received notice from the New York Stock Exchange (NYSE) confirming that, from December 31, 2011, its ADS have regained compliance with the NYSE’s continued listing standard that requires a minimum average closing price of $1.00 over 30 consecutive trading days.

Shares have risen 27.2% in the last five days and 50.5% in the last month.  Year-to-date,  shares have lost 65.0%.

Source:

NBG Press Releases

http://www.businessweek.com/news/2012-01-26/greeks-banks-rise-before-debt-swap-talks-resume-athens-mover.html

Financial Summary

NGB posted a marginal loss of €7 million, excluding impairment losses on Greek Government bonds prompted by PSI 1 (€1,339 million after tax), for the nine months of 2011. That compares with a profit of  €259 million in the comparable period of the prior year. NBG cited the persistence of high provisions, which amounted to €1,310 million (up by +32% year-over-year), and impairments in the equities and mutual funds investment portfolio (€133 million in the nine months of 2011).

Source: http://www.nbg.gr/wps/wcm/connect/7425d800493daac4b386f736172d79c7/Press_Release_EN_9M_2011.pdf?MOD=AJPERES&CACHEID=7425d800493daac4b386f736172d79c7

Technical Analysis

Source: http://stockcharts.com

NBG is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for NBG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

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2. Stock Alert for Citigroup Inc. (C)
3. Stock Alert for Suntech Power Holdings Co. Ltd. (STP)

The Journal reported that Bank of America agreed to sell a pool of 400,000 loans to Fannie last Friday. Fannie is said to have acquire the pool of home loans, which have an unpaid principal balance of $73 billion, for more than $500 million.

Earlier this week Fannie Mae’s credit rating was downgraded by Standard & Poor’s from AAA to AA+. The downgrade of Fannie Mae’s credit rating came after S&P downgraded the credit rating of U.S. from AAA to AA+. Since Fannie Mae relies on the U.S. government, a downgrade of the company’s AAA rating was anticipated after the U.S. lost its AAA rating.

The downgrade immediately pushed yields on home-loan bonds issued by Fannie to the highest relative to U.S. Treasuries in over two years. According to data compiled by Bloomberg, the yields on Fannie Mae’s 30-year fixed-rate mortgage-backed securities climbed 0.14 percentage point to 1.22 percentage points more than 10-year U.S. Treasury.

The rating downgrade came a few days after Fannie Mae released its second-quarter financial results. The company posted a loss of $5.2 billion in the second quarter of 2011. It cited weakness in the housing and mortgage market as the reason for the huge loss. The company has also asked for an additional $5.1 billion from the U.S. Treasury to eliminate its net worth deficit.

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Source: Reuters.com, SEC Filings

Recent News

Shares of the banking giant gained 16.74% to close Tuesday at $7.60, rebounding from the prior session slide. BAC shares were hammered on Monday as investors worry about the impact of S&P’s downgrade of Fannie and Freddie on the mortgage market.

Shares were further hit on news that American International Group Inc. (NYSE: AIG) is suing the Charlotte, North Carolina-based bank to recover more than $10 billion of losses from a ‘massive fraud’ on mortgage debt. AIG’s complaint, being filed in the New York State Supreme Court in Manhattan, accuses BAC and its Countrywide and Merrill Lynch units of misrepresenting the quality of mortgages placed in securities and sold to investors.

Moving to reassure the Company remains financially strong despite its dropping stock price, CEO Brian Moynihan, in a letter to almost 288,000 employees, said the bank was on the right path and could weather the current storm. Reuters quoted the CEO as saying, “We are aggressively taking action to put the legacy mortgage issues behind the company — even at great short-term cost — and to help get the U.S. housing market going again.  We have weathered challenging times before and we will now.”

BAC has so far reached a 52-week high of $15.31, its 52-week low being $6.31. It is currently below its 50-day moving average of $10.10 and below its 200-day moving average of $12.30. Market capitalization currently stands at $77.02 billion and it has 10.13 billion outstanding shares.

Financial Summary

BAC reported a net loss of $8.8 billion, or $0.90 per diluted share, for the second quarter of 2011, compared with net income of $3.1 billion, or $0.27 per diluted share, in the year-ago period. Excluding certain mortgage-related items and other selected items, net income was $3.7 billion, or $0.33 per diluted share, in the second quarter of 2011.

The Company said results were driven by charges related to the recently announced agreement to resolve nearly all of the legacy countrywide-issued first-lien non-government sponsored enterprise (GSE) residential mortgage-backed securitization (RMBS) repurchase exposures, as well as the impact of other mortgage-related costs. These charges were partially offset by lower credit costs, gains from the sale of non-core assets and debt securities, improved sales and trading revenues and higher asset management fees and investment banking fees.

BAC’s Consumer Real Estate Services division reported a net loss of $14.5 billion, compared to a net loss of $1.5 billion for the same period in 2010. Revenue declined by $14 billion, and noninterest expense increased by $5.9 billion from the year-ago quarter. These amounts were partially offset by a decline in the provision for credit losses of $883 million from a year ago.

Global Banking and Markets reported net income of $1.6 billion, up from $898 million in the year-ago quarter, reflecting higher investment banking fees and increased sales and trading revenue. Although noninterest expense was relatively flat on a reported basis, the prior year period included the impact of the UK bonus tax. After considering this item, expenses increased from the year-ago quarter, driven by revenue-related compensation and investments in infrastructure. Compared to a seasonally strong first quarter of 2011, revenue was down $1.1 billion. Provision benefit decreased $51 million from the second quarter of 2010 due to lower reserve releases versus the prior year period.

Global Wealth and Investment Management’s posted a 54% year-over-year increase in net income due to higher net interest income as a result of deposit growth, higher fee-based income, lower credit costs and the absence of a charge related to the sale of the Columbia long-term asset management business in the second quarter of 2010. These factors were partially offset by higher expenses. Revenue increased 7% from a year earlier to $4.5 billion, thanks to the impact of deposit growth and record asset management fees.  This was partially offset by the impact of the aforementioned sale during the year-ago quarter.

At June 30, 2011, BAC’s total global excess liquidity increased about $16 billion from the previous quarter to $402 billion.  Its time-to-required funding was 22 months at June 30, 2011 and 2010.

Technical Analysis

Source: http://stockcharts.com

BAC is below the lower Bollinger Band, implying that it is currently extended to the downside from its recent trend. Be aware, however, …

The MACD for BAC currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for National Bank of Greece (NBG)
2. Stock Alert for Citigroup Inc. (C)
3. Stock Alert for Agria Corp. (GRO)

Citigroup (C) is a global financial services company with approximately 200 million customer accounts in more than 140 countries. Through Citicorp and Citi Holdings, Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management.

The Company was founded in 1812 and is based in New York, New York.

Source: Reuters.com, SEC Filings.

Recent News

Citigroup shares traded in the green Thursday, a day after news that mega investor Warren Buffett’s investment company Berkshire Hathaway Inc. (NYSE: BRK.A) had joined a bidding group engaged in exclusive talks to buy the Company’s consumer-lending business. The Wall Street Journal reported on the billionaire investor’s interest in OneMain Financial, formerly known as CitiFinancial, citing people familiar with the matter. Citigroup is reportedly negotiating the sale of assets worth about $9 billion.

Citigroup traded as much as 2.26% higher yesterday to reach an intra-day high of $42.96.  About 13.82 million shares have traded hands during the session, versus the 10-day average volume of 34.69 million. In the past 52 weeks, shares of Citigroup have traded between a low of $36.30and a high of $51.50. The stock is currently above its 50-day moving average of $39.79 and below its 200-day moving average of $44.82.

Financial Summary

Citigroup reported first quarter net income of $3.0 billion, compared to $1.3 billion in the fourth quarter 2010 and $4.4 billion in the first quarter 2010.

Revenues for the first quarter 2011 totaled $19.7 billion, up 7% sequentially, but down 22% from the first quarter 2010. Citicorp revenues of $16.5 billion were 16% higher sequentially, but 11% lower than the prior year period. The year over year decline was mainly driven by lower revenues in Fixed Income Markets and North America Regional Consumer Banking, as well as negative CVA.

Credit continued to improve during the quarter, as Citigroup net credit losses declined for the seventh consecutive quarter to $6.3 billion. In addition, the current quarter included a net $3.3 billion release of allowance for loan losses and unfunded lending commitments.

Citi Holdings’ assets were $337 billion at the end of the first quarter 2011, down $166 billion from the first quarter 2010. Citi Holdings revenues of $3.3 billion were 50% lower than the prior year period, reflecting the continued decline in assets and the revenue impact of a $12.7 billion asset transfer from held-to-maturity (HTM) to trading.

In the first quarter 2011, Citigroup transferred $12.7 billion of assets in the Special Asset Pool in Citi Holdings from HTM to trading. This transfer permits the sale of those assets, which have disproportionately higher risk-weightings under Basel III. The transfer resulted in a net $709 million pre-tax charge to revenues, from the recognition of $1.7 billion in pre-tax losses ($1.0 after-tax) which were previously reflected in accumulated other comprehensive income (AOCI), partially offset by $946 million of mark-to-market and realized gains on those assets.

Citigroup continued to improve its capital strength, with a Tier 1 Common ratio of 11.3%, book value per share of $5.85 and tangible book value per share of $4.69, each as of the end of the first quarter 2011.

Technical Analysis

Source: http://stockcharts.com

C is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

The MACD for C currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Bank of America Corp. (BAC)
2. Stock Alert for National Bank of Greece (NBG)
3. Stock Alert for Sino Clean Energy Inc. (SCEI)

The Company was founded in 1812 and is based in New York, New York.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of Citigroup dropped 1.50% to close Monday at $4.43, after the bank giant reported a 1-for-10 reverse split of its common stock.  The reverse split, which is likely to be effective on May 6, 2011, will shrink the Company’s heavy volume of about 29 billion shares outstanding to approximately 2.9 billion – fewer compared to before the financial crisis.

Following the effective date of the reverse stock split, the Company also said it plans to reinstate a quarterly dividend of a penny per common share in the second quarter of 2011. The Company last paid a dividend of one cent in February 2009.

“The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year,” Citigroup CEO Vikram Pandit said in a press release.

Investors cheered the Company’s announcement as with all reverse splits, reducing the number of shares outstanding decreases price volatility and allows the stock to trade higher.

However, not all welcomed the Company’s latest move, with others seeing it as a weakness, or even a bad thing.

MarketWatch report quoted Barclays Capital analysts as saying that the reverse stock split will pressure trading volume on cash equity exchanges. “Citigroup year-to-date has been averaging about 516 million shares a day, or 6% of overall industry average daily volume and factoring in what it considers the most extreme scenario for the exchanges, we could see a decline of roughly 5%-6%” in overall industry average daily volume, or 464 million shares based on year-to-date figures.”

In other news Monday, the WSJ blog reported that the giant bank is looking to sell $1 billion private equity portfolio to an “exclusive group of bidders.” The portfolio represents a mix of private-equity co-investments and fund positions spanning across strategies, including buyout, venture capital and debt, the report said, citing sources familiar with the matter.

In the past 52 weeks, shares of Citigroup have traded between a low of $3.53 and a high of $5.15.  Approximately 819.88 million shares have traded hands during Monday’s session, versus the average daily volume of 464.74 million.  Citigroup remains below its 50-day moving average of $4.71 and its 200-day moving average of $4.44.

Visit Citigroup at www.citigroup.com

Financial Summary

Citigroup reported fourth-quarter 2010 net income of $1.3 billion, or $0.04 per diluted share, compared to a net loss of $7.6 billion, or $0.33 per diluted share, in the fourth quarter 2009. Citigroup’s net income for full year 2010 was $10.6 billion, or $0.35 per diluted share, compared to a net loss of $1.6 billion, or $0.80 per share, in the full year 2009.

Citigroup’s revenues in the fourth quarter 2010 were $18.4 billion and included negative CVA of $1.1 billion. Excluding CVA, revenues of $19.5 billion were down 6% from the prior quarter, principally driven by lower Securities and Banking revenues and lower gains on sale of AFS securities in Corporate/Other.

Citicorp’s net income remained strong in 2010 at $14.9 billion, while Citi Holdings’ net loss decreased 52%, from $8.9 billion to $4.2 billion, when compared to 2009. Citi Holdings’ assets stood at $359 billion at the end of 2010, down from $487 billion at the end of 2009. This performance helped Citi to continue to improve its capital strength, as its Tier 1 Common ratio increased from 9.6% to 10.7% over the course of the year.

Citigroup’s total allowance for loan losses was $40.7 billion at quarter end or 6.31% of total loans, down from $43.7 billion or 6.73% in the prior quarter driven, in part, by asset sales and lower non-accrual loans.

Citigroup reported fourth-quarter 2010 net income of $1.3 billion or $0.04 per diluted share, compared to a net loss of $7.6 billion or $0.33 per diluted share, in the fourth quarter 2009. Citigroup’s net income for full year 2010 was $10.6 billion, or $0.35 per diluted share, compared to a net loss of $1.6 billion, or $0.80 per share, in the full year 2009.

Citigroup’s revenues in the fourth quarter 2010 were $18.4 billion and included negative CVA of $1.1 billion. Excluding CVA, revenues of $19.5 billion were down 6% from the prior quarter, principally driven by lower Securities and Banking revenues and lower gains on sale of AFS securities in Corporate/Other.

Citicorp’s net income remained strong in 2010 at $14.9 billion, while Citi Holdings’s net loss decreased 52%, from $8.9 billion to $4.2 billion, when compared to 2009. Citi Holdings’ assets stood at $359 billion at the end of 2010, down from $487 billion at the end of 2009. This performance helped Citi to continue to improve its capital strength, as its Tier 1 Common ratio increased from 9.6% to 10.7% over the course of the year.

Full Year 2010 Key Items:

Citigroup’s net income was $10.6 billion, compared to a net loss of $1.6 billion in 2009.

Citigroup’s revenues were $86.6 billion, down 5% from $91.1 billion in 2009.

Citicorp’s revenues were $65.6 billion, down 4% from 2009, as 3% growth in both Regional Consumer Banking and Transaction Services, was more than offset by a decline in Securities and Banking.

Citi Holdings’ revenues were $19.3 billion, down 42% from 2009, mainly due to the absence of the $11.1 billion gain on sale of Smith Barney recorded in the prior year as well as lower overall assets.

Corporate/Other revenues of $1.8 billion compared to negative $10.6 billion in 2009. Prior year revenues included the $10.1 billion loss associated with the TARP repayment and exiting of the loss-sharing agreement with the U.S. government.

Citigroup’s expenses were $47.4 billion, down $447 million, or 1%, from 2009.

Citigroup’s provisions for credit losses and for benefits and claims declined $25.7 billion, or 50%, to $26.0 billion.

Citicorp generated 59% of its revenues and 76% of its net income from its international operations.

International Regional Consumer Banking:

Revenues were $17.7 billion, up 9% from prior year.

Net income more than doubled to $4.2 billion.

Net credit margin was up 21% to $14.3 billion or 12.5% of average loans.

Average deposits of $150 billion were up 12%.

Average loans of $114 billion increased 12%.

Cards purchase sales of $105 billion grew 17%.

Citigroup’s total allowance for loan losses was $40.7 billion, or 6.31% of loans. Allowance for loan losses at 209% of non-accrual loans.

Citigroup’s non-accrual loans were $19.4 billion, down 13% sequentially and 39% year over year.

Book Value per share was $5.61. Tangible Book Value2 per share was $4.45.

Source: www.citigroup.com

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 21 polled investment analysts. Against the Citigroup Inc company.

The 19 analysts offering 12-month price targets for C have a median target of 5.50, with a high estimate of 7.00 and a low estimate of 4.00. The median estimate represents a 22.22% increase from the last price of 4.50.

Source: markets.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=C.N

Technical Analysis

Source: http://stockcharts.com

C is below its 20-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

C is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for C currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Source: Thomson Financial

Source: Yahoo Finance

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Citigroup Inc. (C)
2. Stock Alert for Citigroup Inc. (C)
3. Stock Alert for Citigroup Inc. (C)

The Company was founded in 1812 and is based in New York, New York.

Source: Reuters.com, SEC Filings.

Financial Summary

Citigroup reported third quarter 2010 net income of $2.2 billion or $0.07 per diluted share, marking its third consecutive quarterly operating profit. Citigroup income from continuing operations, which excludes an $800 million pre-tax ($435 million after-tax) loss on the previously-announced sale of The Student Loan Corporation (SLC), was $2.6 billion or $0.08 per diluted share in the third quarter 2010. In the first nine months of 2010, Citigroup earned $9.3 billion of net income and $9.6 billion of income from continuing operations.

Net income was down $529 million, or 20%, from the second quarter 2010, mainly driven by the loss on the previously-announced sale of SLC, as well as Securities and Banking, which declined 17%. Regional Consumer Banking net income of $1.2 billion increased 5% from the prior quarter, driven by Latin America and North America. In addition, Transaction Services net income of $920 million was down 1% from the prior quarter, reflecting consistent strength in the business, despite a low rate environment, and continued investments, as growth in Latin America and Asia was offset by declines in North America and EMEA.

Third quarter 2010 revenues of $20.7 billion declined $1.3 billion, or 6%, from the second quarter 2010, primarily driven by Local Consumer Lending and Securities and Banking. Citicorp Latin America and Asia revenues were up 7% and 1%, respectively, from the prior quarter, while North America and EMEA revenues declined 6% and 2%, respectively.

Provisions for credit losses and for benefits and claims declined $746 million sequentially to $5.9 billion, the lowest level since the second quarter of 2007,4 reflecting continued improvement in credit quality.

Expenses of $11.5 billion decreased $346 million, or 3%, from the prior quarter. Excluding the impact of the U.K. bonus tax in the second quarter 2010, expenses increased $58 million, or 1%, reflecting continued investment spending in Citicorp, partially offset by lower Citi Holdings expenses.

During the quarter, Citigroup continued to focus on growing its core businesses in Citicorp, while divesting assets in Citi Holdings in an economically rational manner. Expressed on a pro forma basis for the previously-announced sale of SLC, Citi Holdings represented 20% of Citi’s assets at the end of the third quarter 2010, as compared to 38% in the first quarter 2008.

Citigroup remained one of the best capitalized banks with $125.4 billion of Tier 1 Capital and a Tier 1 Common ratio of 10.3% at the end of the third quarter 2010. In addition, it had common equity of $162.6 billion and $43.7 billion of allowance for loan losses.

Key Items

Citigroup revenues were $20.7 billion, down $1.3 billion sequentially, on lower Local Consumer Lending and Securities and Banking revenues.

Citigroup expenses declined $346 million, or 3%, sequentially to $11.5 billion. Excluding the U.K. bonus tax of $404 million in the prior quarter, expenses were up 1%, reflecting continued investments in Citicorp businesses, partially offset by expense reductions in Citi Holdings.

Citigroup net credit losses declined $303 million, or 4%, sequentially to $7.7 billion, reflecting continued improvement across most consumer portfolios. Net credit losses have declined for five consecutive quarters since reaching $11.5 billion in the second quarter 2009.

Citigroup recorded a net release of reserves for loan losses and unfunded lending commitments of $2.0 billion in the third quarter 2010, compared to a $1.5 billion net reserve release in the prior quarter. The release in the quarter consisted of $426 million in Citicorp and $1.5 billion in Citi Holdings.

Citigroup’s total allowance for loan losses was $43.7 billion, or 6.73% of loans, compared to $46.2 billion, or 6.72% of loans, in the second quarter 2010.

Citigroup’s allowance for consumer loan losses was $37.6 billion, down $2.0 billion from the prior quarter. As a percentage of total consumer loans, the allowance for consumer loan losses was 8.16%, up from 7.87% in the second quarter 2010. Coincident months of coverage on the consumer portfolio increased sequentially to 16.7 months from 15.9 months.

Citigroup’s non-accrual loans were $22.4 billion, down 10% sequentially from $24.8 billion.

Citigroup’s Tier 1 Capital ratio was 12.5%, compared to 11.99% in the second quarter 2010.

Citigroup’s Tier 1 Common ratio was 10.3%, up from 9.71% in the prior quarter.

Book Value per share was $5.60, up from $5.33 in the prior quarter. Tangible Book Value per share was $4.44, up from $4.19 in the prior quarter.

Citigroup end of period assets increased 2% sequentially to $1.98 trillion at the end of the third quarter 2010.  Citi Holdings end of period assets declined $44 billion, or 9%, sequentially to $421 billion and were down $406 billion, or 49%, from the first quarter 2008. Citi Holdings assets comprised 21% of total Citigroup assets at the end of the third quarter 2010, down from 38% in the first quarter 2008. Expressed on a pro forma basis for the previously-announced sale of SLC, Citi Holdings assets would have declined $75 billion, or 16%, from the prior quarter to $390 billion, and would have comprised 20% of total Citigroup assets at the end of the third quarter 2010.

REVENUES

Citigroup revenues were $20.7 billion, down $1.3 billion, or 6%, from the second quarter 2010.

Citicorp revenues were $16.3 billion, down $200 million, or 1%, from the second quarter 2010, driven by a decline in Securities and Banking, partially offset by growth in Regional Consumer Banking and Transaction Services. Growth in Citicorp Latin America and Asia revenues, up 7% and 1%, respectively, was offset by declines in North America and EMEA, down 6% and 2%, respectively.

Citi Holdings revenues were $3.9 billion, down $1.1 billion, or 22%, from the prior quarter.

Corporate/Other revenues were $596 million, down $67 million, or 10%, from the prior quarter, reflecting losses on hedging activities and gains on sale of AFS securities.

EXPENSES

Citigroup expenses were $11.5 billion, down $346 million, or 3%, from the prior quarter. Excluding the U.K. bonus tax of $404 million in the prior quarter, expenses were up 1%, reflecting continued investments in Citicorp businesses, partially offset by expense reductions in Citi Holdings.

Citicorp expenses were $8.9 billion, down $207 million, or 2%, from the prior quarter. Excluding the U.K. bonus tax in the prior quarter, expenses increased 2%, reflecting continued investment spending.

Citi Holdings expenses were $2.2 billion, down $215 million, or 9%, from the prior quarter, mainly driven by Local Consumer Lending, reflecting lower restructuring costs and declining assets.

CREDIT

Citigroup total provisions for credit losses and for benefits and claims of $5.9 billion declined $746 million, or 11%, sequentially, to the lowest level since the second quarter of 2007.

Citicorp credit costs were $2.6 billion, and included net credit losses of $3.0 billion and a $426 million net release of allowance for loan losses and unfunded lending commitments. Net credit losses increased $55 million, or 2%, primarily due to a restructuring of a specific corporate credit, partially offset by a $191 million decline in consumer net credit losses. Underlying credit trends in the corporate and consumer portfolios generally continued to improve.

Citi Holdings credit costs were $3.3 billion, which included $4.6 billion of net credit losses, a net release of allowance for loan losses and unfunded lending commitments of $1.5 billion, and a $189 million provision for policyholder benefits and claims. Net credit losses declined $358 million, or 7%, sequentially, and the net reserve release compared to a $845 million net release in the prior quarter.

NET INCOME

Citigroup net income was $2.2 billion, down $529 million, or 20%, from the prior quarter.

Citicorp net income of $3.5 billion was $242 million, or 6%, lower than the prior quarter, primarily driven by higher credit costs in Securities and Banking.

Citi Holdings net loss of $1.1 billion was $71 million, or 6%, less than the net loss of $1.2 billion in the prior quarter, as continued improvement in credit costs and expenses more than offset the decline in revenues.

Corporate/Other net income of $91 million, was down $38 million, or 29%, primarily reflecting Corporate Treasury activity, including hedging.

Discontinued operations net loss of $323 million compared to a net loss of $3 million in the prior quarter, and primarily reflected the loss on the previously-announced sale of SLC.

BALANCE SHEET

Citigroup assets were $1.98 trillion at quarter-end, up 2% sequentially.

Citi Holdings assets declined $44 billion sequentially, or 9%, to $421 billion and were down $406 billion, or 49%, from the first quarter 2008. Citi Holdings assets comprised 21% of total Citigroup assets at the end of the third quarter 2010, down from 38% in the first quarter of 2008. Expressed on a pro forma basis for the previously-announced sale of SLC, Citi Holdings assets would have declined $75 billion, or 16%, from the prior quarter to $390 billion, and would have comprised 20% of total Citigroup assets at the end of the third quarter 2010.

Citigroup deposits were $850 billion, up 4% sequentially, driven by growth in international deposits.

Citigroup’s net interest margin was 3.07%, down from 3.15% in the second quarter 2010, mainly reflecting lower investment yields as the liquidity position is maintained.

Source: Citigroup

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 20 polled investment analysts. Against the Citigroup Inc company.

The 20 analysts offering 12-month price targets for C have a median target of 5.35, with a high estimate of 6.90 and a low estimate of 4.00. The median estimate represents a 27.68% increase from the last price of 4.19.

Source: markets.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=C

Investment Highlights

Terra Firma Capital Partners Ltd. founder Guy Hands last week lost his court case accusing Citigroup of tricking him into overpaying for music company EMI. A jury in a U.S. District Court jury in Manhattan unanimously decided that Citigroup investment banker David Wormsley did not deceive the Terra Firma into buying EMI at an inflated price during the May 2007 bidding for the music label. Citigroup is EMI’s main creditor bank and provided 2.6 billion pounds ($4.2 billion) in loans for the acquisition. Terra Firma paid 4 billion pounds, or $6.5 billion, for EMI.

“We are very pleased that the jury reached a unanimous verdict confirming what we have said from the beginning: that Citi and David Wormsley treated Terra Firma with honesty and integrity in the EMI transaction. The jury’s verdict makes clear that Terra Firma’s irresponsible accusations of fraud were nothing more than a misguided attempt to gain leverage in debt restructuring negotiations,” the Company said in a statement.

Following the news, some industry insiders said the Citigroup could end up owning the music label, known for producing some of the most successful and best known recording artists, and then selling it to rival Warner Music Group.

Bloomberg on Tuesday reported that Citigroup may sell about $570 million of investments and stakes it holds with the London-based buyout firm CVC Capital Partners Ltd.  The report, citing people familiar with the matter, said the stakes include about $250 million of interests in two Asia funds; about 15 million euros, or $21 million, in a European fund; and about 210 million euros, which would be nearly $300 million, of stakes in several European companies. The Company’s share price jumped following the news.

Technical Analysis

Source: http://stockcharts.com

C is trading above its 13 day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there is buying interest in this stock.

C has been relatively stable recently. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, C is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for C currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

The RSI is currently at 64.51% which indicates that the stock is neither overbought nor oversold.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Citigroup Inc. (C)
2. Stock Alert for Citigroup Inc. (C)
3. Stock Alert for Citigroup Inc. (NYSE: C)