This theme of light revenues for banks is not a new one. Under the current climate, these banks are earnings far less on their very short-maturity assets and leverage seems to keep coming lower and lower through time.
Citi continues to shrink its balance sheet and assets were down 3% to $1.95 trillion. Credit losses were $6.3 billion (down for 7 consecutive quarters) and it has another $3.2 billion as a provision for credit losses; but the total allowance for loan losses was $36.6 billion. Citi’s Tier-1 capital ratio was 13.3% and its Tier-1 common equity ratio was 11.3%. Its return on common equity was 7.3%.
What is interesting is that Citi claims a book value per share of $5.85 with a tangible book value per share of about $4.69. That tangible book value is what investors will key off and that was up $0.24 from the end of 2010.
Citigroup shares closed at $4.42 on Friday and the 52-week trading range is $3.53 to $5.15. The early indications have Citi shares trading up at $4.45 in pre-market trading.
JON C. OGG
Top Gaining Stocks
Top Losing Stocks