ANALYST: "Citigroup Is My Favorite Bank Here"...
Citigroup beats estimates on profits and revenue.
David Faber discusses Citigroup's earnings with analyst Jeff Harte, who has a buy rating on Citi, and $49 price target on the stock.
Morgan Stanley is another good name to be long.
NYT Dealbook
Citigroup beat earnings expectations on Monday as net income surged by 30 percent in the first quarter of 2013. But beneath the banner results, the bank is grappling with a sluggish economy and skittish American consumers who are still wary of shouldering fresh debt. The bank, which has been aggressively working to slash costs and slog through a glut of soured assets, reported a profit of $3.8 billion, or $1.23 a share, for the first quarter. Revenue rose by 3 percent to $20.5 billion.
The top-line growth game from a 2 percent increase in Citicorp and 15 percent from Citi Holdings, the part of the company used to unwind the bad assets from the subprime mortgage collapse. The results were lifted by the release of $652 million in loss reserves, of which $351 million was from the Citi Holdings portfolio that is largely composed of mortgage assets. These assets are tied to U.S. house prices, which have been rising.
Apr 16, 2013 at 3:23 AM
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