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

1. Stock Alert for Bank of America Corp. (BAC)
2. Stock Alert for Citigroup Inc. (C)
3. Stock Alert for Suntech Power Holdings Co. Ltd. (STP)

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.

Investment Highlights

Shares of Citigroup moved up $0.03, or 0.61%, to close Monday at $4.91. Approximately 352 million shares traded hands for the day, versus an average day of 482.96 million shares. The stock remains above its 50-day moving average of $4.86 and its 200-day moving average of $4.31. Market capitalization currently stands at $142.64 billion and it has 29.05 billion outstanding shares.

Banking giant Citigroup is reportedly hiring as many as 20 senior corporate and investment bankers in Europe in the first-half of this year.   In an interview with Bloomberg,  Manuel Falco and James Bardrick, Citigroup’s joint heads of banking in Europe, the Middle East and Africa, said the firm will be focusing on “countries and regions where activity is likely to grow quickly, including Russia, Turkey and the Middle East.”

“Our balance sheet has been recapitalized, and we are in a position to deploy capital to our core clients to support their businesses and growth.  The banking business is now in the best position it’s been in for years,” the report quoted Bardrick as saying.

Other News

Citigroup recently said its Global Transaction Services business, acting through Citibank N.A., has been appointed by UK retailer Debenhams plc (Debenhams) as depositary for its sponsored Level 1 American Depositary Receipt (ADR) program. Debenhams’ ADRs trade in the OTC marketplace under the symbol DBHPL, with each ADR representing 4 ordinary shares. Debenhams’ ordinary shares are listed on the London Stock Exchange.

Also recently, Citigroup announced that it has been appointed by Eos Partners to provide a comprehensive suite of back- and middle-office hedge fund administration services for its four Eos Credit Funds. The services include bank loan administration, document management, and loan portfolio analytics. This latest mandate adds to the firm’s existing portfolio of $65 billion in bank loan assets under administration and custody.

Reuters on Monday reported the closure of Citigroup’s local branch in Ivory Coast, following suit with BNP Paribas. The report cited a senior official of the local unit as saying. According to the report, the unnamed official said “the operations had been forced to close because of problems clearing cheques since the West African central bank severed ties with Ivory Coast, whose political crisis over a disputed poll has wrought havoc on the economy.”

Source: 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 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 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 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 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.

Full Year 2010 Key Items:

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

Citigroup revenues1 were $86.6 billion, down 5% from $91.1 billion in 2009.

Citicorp 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 expenses were $47.4 billion, down $447 million, or 1%, from 2009.

Citigroup provisions for credit losses and for benefits and claims1 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 20 analysts offering 12-month price targets for C have a median target of 5.55, with a high estimate of 6.90 and a low estimate of 4.00. The median estimate represents a 13.73% increase from the last price of 4.88.

Source: markets.ft.com

Consensus Estimates Analysis

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

Technical Analysis

Source: http://stockcharts.com

Thursday, C closed above its 20-day moving average. This is generally considered to be an indication of a bullish trend.

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 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.

C’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

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. (NYSE: C)

Citigroup is a global diversified financial services holding company that provides a broad range of financial products and services and operates its core assets through Citicorp, the company’s global bank for consumers and businesses. Citicorp is physically present in approximately 100 countries, and offers services in more than 160 countries and jurisdictions, which provides a strong foundation for servicing the broad financial services needs of large multinational clients and for meeting the needs of retail, private banking, commercial and institutional customers around the world. Citicorp’s end of 2010 assets were $1.3 trillion.

The company’s second franchise – Citi Holdings contains businesses and portfolios of assets that are not central to its core Citicorp businesses. These businesses are more asset intensive and reliant on wholesale funding and usually are product-driven rather than client-driven. Citigroup intends to exit these businesses as quickly as possible in an economically rational manner and to generate funds to improve its capital strength. Citi Holdings’ assets stood at $359 billion at the end of 2010, down from $487 billion at the end of 2009 and now represent less than 20% of Citigroup’s balance sheet.

For Q4 2010, Citigroup reported quarterly net income of $1.3 billion, or 4 cents a share, compared with a loss of $7.6 billion, or 33 cents a share for the comparable period of 2009, but missed the analyst consensus estimates. Revenue for the same period jumped to $18.4 billion from $5.4 billion in the year-ago period, but slipped 11% from Q3 2010. On average, analysts were expecting profit of 8 cents a share on revenue of $20.6 billion, according to Thompson Reuters.

It seems that lower than expected revenue for Q4 2010, as well as an 8% sequential growth in expenses were the major causes of the disappointing results. While the revenue decline can be explained by the challenging economic environment, the expenses surge could make analysts seriously revisit their valuation models and make material downward corrections to their earnings estimates.

Altogether, Citigroup reported the fourth consecutive profitable quarter and earned $10.6 billion in 2010, compared to a loss of $1.6 billion in 2009.  Although there are positive signs in the U.S. economy, the housing market yet has to recover, job creation has been weak and the public debt load is still hampering recovery worldwide. Going forward, the company is well positioned to capitalize on economic recovery worldwide, which is expected to be more robust outside the U.S. in 2011.

The company has clearly recovered from its $45 billion bailout in 2008 and succeeded to recapitalize and weather away the nonperforming assets. Going forward, Citigroup’s ability to further improve on 2010 results is largely dependent on the overall state of the U.S. economy and international business environment. The emerging markets footprint (approximately 40% of total revenue in 2010), as well as its global transaction services business (11% of total revenue) offers Citigroup better long-term growth prospects than most of its competitors.

Although Citigroup reported a disappointing Q4 2010, the company has succeeded to lay the groundwork for achieving sustained and responsible growth while maintaining consistent profitability going forward and accompanied by the improvement in credit quality and capital position. However, the financial sector is an accurate reflection of the overall economy and thus Citigroup will continue gliding among high unemployment, weak housing market and high debt levels to achieve its growth claims in 2011.

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

Share Statistics (12-Jan-11)			FY 2008	FY 2009	% Chg	Q2 2009	Q2 2010	% Chg
Symbol	C	Revenue, $Mn	105.8B	108.0%	2.1%	36.81B	8.03B	-78.2%
Current price	$5.08	Gross marg.	n/a	n/a	n/a	n/a	n/a	n/a
52wk Range:	$3.11-5.08	Oper. margin	18.8%	13.2%	-29.8%	n/a	n/a	n/a
Avg Vol (3m):	545,199,000	Net margin	-26.2%	-1.5%	-94.3%	11.6%	33.6%	189.7%
Market Cap.	147.57B
Shares Outstanding	29.05B	EPS, $	-4.72	-0.76	-83.9%	0.51	0.09	-82.4%

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, 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 UK 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 UK 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.

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 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.

The Company is expected to report its fourth-quarter results on January 18, 2011.

Source: Citigroup Inc.

[1] [2]

Source: Reuters.com, SEC Filings.

Analyst Consensus

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

Analyst Detail	Buy	Outperform	Hold	Underperform	Sell	No Opinion
Latest	7	4	7	1	1	0
4 weeks ago	7	4	7	1	1	0
2 months ago	7	4	7	1	1	0
3 months ago	7	4	6	1	1	0
Last year	4	2	8	1	2	1

The 19 analysts offering 12-month price targets for Citi have a median target of 5.50, with a high estimate of 6.90 and a low estimate of 4.00. The median estimate represents a 11.34% increase from the last price of 4.94.

Source: markets.ft.com

Consensus Estimates Analysis

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

Investment Highlights

Citigroup hit a new 52-week high of $5.08 Wednesday on heavy volume of 605.07 million shares.  It is currently trading above its 50-day and 200-day moving averages of $4.62 and $4.18, respectively.  Wells Fargo yesterday upgraded the banking sector to Overweight from Market Weight.

Analysts at Wells Fargo said the firm’s boosted sector rating was based on “superior EPS growth to the S&P 500 and multiple expansion.  StreetInsider.com quoted the firm as saying that “continued credit improvement, a return to positive loan growth, and a constructive investment banking outlook will drive average EPS growth of 59% in 2011, well above the 12% expected for the S&P 500.” The firm also said it expects sentiment in the Large Cap group to improve given “an improving U.S. economy, increased capital returns and a reduction in headline risks … ” The firm expects dividend payout ratios with the banking sector to double from around 14% to 25-30% in 2011.

Citigroup is scheduled to report its Q4 earnings on January 18.  Analysts expect to see a profit of 8 cents per share on revenue of $20.5 billion, a reverse from the year-ago loss of 33 cents per share on $5.4 billion revenue.

Citigroup early this month said it has completed its transactions with Discover Financial Services and SLM Corp. on December 31, 2010. The transaction resulted in Citi’s divestiture of Student Loan Corp. (SLC), which was its student loan business, and also reduced its non-core assets in holdings by approximately $31 billion. The Company said it purchased about $8.7 billion of assets from SLC as part of the transaction, and will explore opportunities to reduce these assets over time.

Source: Citigroup Inc.

Technical Analysis

Source: http://stockcharts.com

Citi is trading above its 20-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 has been buying interest in this stock.

Citi 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 Citi 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

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	0
Sales	1,158,340	7
Net Shares Purchased (Sold)	(1,158,340)	7
Total Insider Shares Held	1.16B	n/a
% Net Shares Purchased (Sold)	(0.1%)	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	1,101,200,000
% Change in Institutional Shares Held	8.86%

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.

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Related Articles

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

Citigroup is a global diversified financial services holding company, which provides a broad range of financial products and services. The company is operating its core assets through Citicorp the company’s global bank for consumers and businesses. Citicorp is physically present in approximately 100 countries, and offers services in more than 160 countries and jurisdictions, which provides a strong foundation for servicing the broad financial services needs of large multinational clients and for meeting the needs of retail, private banking, commercial and institutional customers around the world. At September 30, 2010, Citicorp had approximately $1.3 trillion of assets and $757 billion of deposits, representing approximately 65% of Citigroup’s total assets and approximately 89% of its deposits.

The company’s second franchise – Citi Holdings contains businesses and portfolios of assets that are not central to its core Citicorp businesses. These noncore businesses tend to be more asset intensive and reliant on wholesale funding and also may be product-driven rather than client-driven. Citigroup intends to exit these businesses as quickly as practicable in an economically rational manner through business divestitures, portfolio run-offs and asset sales.

The company is recovering from its $45 billion bailout in 2008, when the U.S. government intervened to stop Citigroup, once the world’s largest bank, from going under by agreeing to share losses on a pool of assets worth $301 billion held by the bank. Of the $45 billion bailout plan, $25 billion was converted to a government ownership stake in Citigroup and the bank repaid the other $20 billion in December 2009. The U.S. Treasury has started to slowly sell its Citigroup shares, affecting negatively the company’s stock price. The government originally had 7.7 billion shares and currently holds approximately 3 billion shares, representing an 11% stake in Citigroup. The eventual finish of Citigroup selling could give a boost to the company’s valuation.

While the U.S. Treasury’ stake selling is restraining Citigroup valuation, the successful execution of recovery strategy and the third consecutive quarter of profitability are indicative that the company is back on capturing its original growth potential. Revenues, net of interest expense increased 2% to $20.7 billion in Q3 2010 compared to Q3 2009; and total assets increased also by 2% to $1,983 billion at the end of Q3 2010, from the end of Q2 2010.

Citigroup reported Q3 2010 net income of $2.2 billion or $0.07 per diluted share, up from $101 million or (0.27) per diluted share in Q2009.  In the first nine months of 2010, Citigroup earned $9.3 billion of net income and $9.6 billion of income from continuing operations.  Moreover, the company 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.

Going forward, the company is well-positioned to capitalize on economic recovery worldwide, which is expected to be more robust outside the U.S. in 2011. The emerging markets footprint (43% of total revenue in 2010), as well as its global transaction services business (11% of total revenue) offers Citigroup better long-term growth prospects than most of its competitors.

Accordingly, the median price of 20 sell-side and independent analysts who are covering the company stands at $5.35. Of these 20 analysts, 11 are positive concerning Citigroup’s appreciation potential, seven are neutral and only two are negative, according to Thompson Reuters.

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

Source: Reuters.com, SEC Filings.

Financial Summary

Citigroup recently reported second quarter 2010 net income of $2.7 billion or $0.09 per diluted share, on revenues of $22.1 billion, marking a second consecutive profitable quarter. Citigroup earned $7.1 billion of net income in the first six months of 2010.

Revenues declined $3.4 billion and net income was down $1.7 billion from the first quarter of 2010, largely as a result of lower Securities and Banking and Special Asset Pool revenues. Other core businesses showed consistent strength, including Transaction Services with $929 million in net income and sequential revenue growth across all international regions.

Provisions for credit losses and for benefits and claims declined $2.0 billion sequentially to $6.7 billion, the lowest level since the third quarter of 2007, reflecting continued improvement in credit quality. This helped increase Regional Consumer Banking‘s net income by 16% sequentially to $1.2 billion.

Although Citigroup maintained expense discipline, expenses were up 3% sequentially, reflecting the impact of the U.K. bonus tax.

Citigroup has been focusing on its core businesses in Citicorp – Securities and Banking, Transaction Services and Regional Consumer Banking – while continuing to divest non-core businesses in Citi Holdings. In the second quarter of 2010, Citicorp earned $3.8 billion while Citi Holdings had a loss of $1.2 billion. Citi Holdings reduced its assets by $38 billion in the second quarter and by a total of $362 billion since the peak in the first quarter of 2008, for a 44% reduction. Citi Holdings now represents less than 25% of Citigroup’s assets compared to 38% at its peak.

Citigroup continues to increase its financial strength and is one of the best capitalized banks in the world, as indicated by $122.9 billion in Tier 1 Capital and a Tier 1 Common ratio of 9.7%. In addition, it has common equity of $154.5 billion and $46.2 billion in loan loss reserves.

Key Items

• Citigroup revenues were $22.1 billion, down $3.4 billion sequentially, on lower Securities and Banking and Special Asset Pool revenues.
• Citigroup expenses increased $348 million, or 3%, sequentially to $11.9 billion, primarily driven by the U.K. bonus tax of $404 million, most of which was recorded in Securities and Banking, as well the impact of continued investments in Citicorp businesses, partially offset by expense reduction in Citi Holdings.
• Citigroup net credit losses declined $422 million, or 5%, sequentially to $8.0 billion, reflecting improvement across most consumer portfolios. Net credit losses have declined for four consecutive quarters since reaching $11.5 billion in the second quarter of 2009.²
• Citigroup recorded a net release of reserves for loan losses and unfunded lending commitments of $1.5 billion in the second quarter of 2010, versus a $53 million net reserve release in the prior quarter. The reserve release in the quarter consisted of $827 million for consumer loans and $683 million for corporate loans and unfunded lending commitments.
• Citigroup’s total allowance for loan losses was $46.2 billion, or 6.72% of loans, down from $48.7 billion, or 6.80% of loans in the first quarter of 2010.
• Citigroup’s allowance for consumer loan losses was $39.6 billion, or 7.87% of total consumer loans, which is approximately flat compared to the prior quarter. Coincident months of coverage on the consumer portfolio increased sequentially to 15.9 months from 15.5 months.
• Citigroup’s non-accrual loans declined 13% from $28.6 billion in the prior quarter to $24.8 billion.
• Citigroup’s Tier 1 Capital ratio was 12.0% compared to 11.3% in the prior quarter.
• Citigroup’s Tier 1 Common ratio was 9.7%, up from 9.1% in the first quarter of 2010.
• Book Value per share was $5.33, up from $5.28 in the prior quarter. Tangible Book Value³ per share was $4.19, up from $4.09 in the prior quarter.
• Citigroup’s end of period assets declined 3% sequentially to $1.9 trillion at the end of the second quarter. Citi Holdings end of period assets declined $38 billion sequentially to $465 billion and were down $362 billion from the peak in the first quarter of 2008. Citigroup’s average assets were $2.0 trillion, essentially flat to the prior quarter, as growth in Citicorp was offset by declines in Citi Holdings.
• Continued support for U.S. economy and consumers. From January 1, 2007, through June 30, 2010, Citigroup has helped more than 990,000 homeowners in their efforts to avoid potential foreclosure. Citigroup also announced a three-month foreclosure suspension program in the Gulf of Mexico region to allow eligible borrowers to remain in their homes as Gulf communities respond to the oil spill and its economic repercussions. As of June 30, 2010, Citigroup was also helping more than 1.6 million credit card members manage their card debt through a variety of forbearance programs.

REVENUES

Citigroup revenues were $22.1 billion, down $3.4 billion, or 13%, from the first quarter of 2010.

Citicorp revenues were $16.5 billion, down $2.0 billion, or 11%, from the first quarter of 2010, driven by a decline in Securities and Banking. Outside of North America, Transaction Services revenues increased 4% and Regional Consumer Banking revenues increased 1%.

Citi Holdings revenues were $4.9 billion, down $1.6 billion, or 25%, from the prior quarter.

Corporate/Other revenues were $663 million, up $314 million, or 90%, from the prior quarter, mainly driven by hedging activities.

EXPENSES

Citigroup expenses were $11.9 billion, up $348 million, or 3%, from the prior quarter, and included $404 million from the U.K. bonus tax.

Citicorp expenses were $9.1 billion, up $605 million, or 7%, from the prior quarter. Excluding the approximately $400 million U.K. bonus tax in Citicorp, most of which was recorded in Securities and Banking, expenses were up 3%, reflecting continued selective investments in Asia and Latin America.

Citi Holdings expenses were $2.4 billion, down $150 million, or 6%, from the prior quarter, reflecting continued expense discipline and the absence of Primerica.

CREDIT

Citigroup total provisions for credit losses and for benefits and claims of $6.7 billion declined $2.0 billion, or 23%, sequentially, to the lowest level since the third quarter of 2007.

Citicorp credit costs of $2.3 billion were down $492 million, or 17%, from the prior quarter, and included net credit losses of $3.0 billion and a $665 million net reserve release for loan losses and unfunded lending commitments. The decline in credit costs reflected continued improvement in corporate credit and key consumer markets, particularly Mexico and India cards.

Citi Holdings credit costs were $4.3 billion, which included $5.0 billion of net credit losses, a net reserve release for loan losses and unfunded lending commitments of $845 million, and a $185 million provision for policyholder benefits and claims. Net credit losses declined 5% sequentially, and the net reserve release compared to a $314 million net build in the prior quarter.

NET INCOME

Citigroup net income was $2.7 billion, down $1.7 billion, or 39%, from the prior quarter.

Citicorp net income of $3.8 billion was $1.4 billion, or 27%, lower than the prior quarter, driven by lower revenues in Securities and Banking and higher expenses, partially offset by a decline in credit costs.

Citi Holdings net loss was $1.2 billion, compared to a net loss of $887 million in the prior quarter. The decline in revenues was offset by continued improvement in expenses and credit costs. The sequential decline in net income was mainly due to lower benefits for income taxes in the current quarter.

Corporate/Other net income of $126 million, net of discontinued operations, was down $49 million, or 28%, from the prior quarter.

BALANCE SHEET

• Citigroup assets were $1.9 trillion at quarter end, down 3% sequentially.
• Cash and deposits with banks were $185 billion, or 9.6% of total assets, compared to $189 billion, or 9.4% of total assets in the prior quarter.
• Citi Holdings assets declined $38 billion sequentially to $465 billion and were down $362 billion, or 44%, from the peak in the first quarter of 2008.
• Citigroup deposits were $814 billion, down 2% sequentially.
• Citigroup’s net interest margin was 3.15%, down from 3.32% in the first quarter of 2010, mainly reflecting continued de-risking of the loan portfolios.

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast amongst 19 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 6.90 and a low estimate of 4.00. The median estimate represents a 34.47% increase from the last price of 4.09.

Source: www.ft.com

Consensus Estimates Analysis

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

Investment Highlights

Citigroup has hired three European energy analysts and one equity salesman from Nomura Holdings Inc. as it expands its coverage of oil and gas stocks.

Alastair Syme will join the New York-based bank as managing director of the energy research team in London, according to an internal memo dated October 4 obtained by Bloomberg News. He will report to Terence Sinclair, head of the bank’s research business.

Citigroup also poached analysts Michael Alsford and Ryan Kauppila from the Japanese bank, while James Talbot will become managing director of energy specialist sales, the memo said. Alsford will be director and Kauppila will be vice president of the team, the document added.

“We are building the best energy research team on the street anywhere in the world,” Sinclair wrote in the memo. The analysts will join a team of at least five working on energy companies in Europe.

Citigroup said on Sept. 15 that it had hired a group of UBS AG energy investment bankers including its global head, Stephen Trauber. Trauber may earn $30 million over three years, the Wall Street Journal reported last month, citing unidentified people familiar with the matter.

Mark Fletcher, Citigroup’s current managing director of the energy research team, will move internally to focus on emerging Europe oil and gas markets, the memo said. His replacement, Syme, will return to Citigroup after leaving for Merrill Lynch in 2001, where he led the energy research team until his departure to Nomura in 2009, the document said.

A geologist from the University of Canterbury in New Zealand, Syme topped the oil and gas European analyst ranking in Institutional Investor magazine’s annual poll in 2009 and 2010, the memo said. Talbot was voted top specialist salesperson in oil and gas across Europe in the 2010 Thomson Extel survey.

Source: http://www.citigroup.com/citi/homepage/

Technical Analysis

Source: http://stockcharts.com

Citigroup 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 has been buying interest in this stock.

Citigroup has been relatively stable recently. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, Citigroup 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 Citigroup 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.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

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.

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