Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) earnings are a bit different this morning. Today looks like a prime example of “the good bank versus the bad bank.”

Citigroup reported that earnings fell 11% and its earnings came in at $0.38 EPS versus estimates of $0.49 EPS.  Keep in mind that many bank earnings expectations had been cratering in the weeks prior to the actual news. Still, the figures were short. The “bad bank” asset unit of Citi Holdings managed a narrower loss of -$806 million versus a loss at -$1.02 billion in the fourth quarter of 2010. There is some good news this morning.  That makes two profitable years now for Citi. 

Wells Fargo & Co. (NYSE: WFC), now the healthiest of earners in the ‘new bank operating environment,’ managed to show a 20% earnings gain of 20% to $4.11 billion.  The boost was said to be from gains related to mortgage financing, but the translation was $0.73 EPS versus estimates of $0.72 EPS.  The loan loss provision was down again, close to $2 billion from $3 billion a year earlier.

Citigroup shares are indicated down over 4% at $29.45 in pre-market trading.  Citi’s 52-week range is $21.40 to $49.60 and shares were up over 15% year to date.  The bank reported book value of $60.78 and a tangible book value of $49.81.

Wells Fargo was negative at first but shares are now up 0.9% at $29.88 in the pre-market.  Its 52-week range is $22.58 to $34.25 and its stated book value was $24.64. 

JON C. OGG

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