Citigroup shareholder lawsuit resolved claims : The US bank Citigroup has paid $590m (£370m) to settle a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets at the height of the financial crisis.
The payment resolves claims that shareholders ended up with massive losses after the bank failed to take timely write-downs on debt obligations - many backed by subprime mortgages - and engaged in self-dealing transactions that hid the risks.
In their 547-page lawsuit, the shareholders described those losses as "ticking time bombs that eventually exploded back onto Citigroup's balance sheet."
Citigroup, which employs around 10,000 staff in London, made a total loss of $27.68bn (£17.49bn) in 2008 but denied wrongdoing in agreeing to settle.
The bank said it wanted to avoid higher legal costs.
It called the accord "a significant step toward resolving our exposure to claims arising from the period of the financial crisis."
Investors have sued an array of US banks over their conduct leading up to and during the 2007-2008 financial crisis.
The Citigroup case began in 2008.
Wednesday's agreement followed mediation before a retired federal judge and the gathering of nearly 40 million pages of documents, according to court papers.
Solicitor Ira Press, who represented shareholders, said: "Based on the allegations and the risks we faced in establishing liability and damages, and in comparison with other securities fraud class-actions, the settlement is a very good result."
Fourteen current and former Citigroup executives had also been sued, including chief executive Vikram Pandit and his predecessor Charles Prince.
It is not clear whether any of them or their insurers are responsible to pay any of the settlement, which must still be rubber-stamped by a court in January.
Citigroup shares closed Wednesday up 57 cents, or 1.9%, on the New York Stock Exchange.
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Showing posts with label Citigroup. Show all posts
Showing posts with label Citigroup. Show all posts
Thursday, August 30, 2012
Monday, July 16, 2012
Why Citigroup profits down Q2 report 2012
Why Citigroup profits down Q2 report 2012, earnings per share report july 16 2012 : Citigroup, the US banking giant, has reported a 12% fall in net income to $2.9bn (£1.9bn) for the second quarter of 2012.
Revenues were $18.6bn for the period April to June, down 10% on the same period last year. But in an indication that the US credit market is improving, the bank was able to reduce provision for bad debts from $27.6bn to $34.4bn. And earnings per share were $0.95, above analysts' expectations.
Our core businesses performed well in a difficult environment," said chief executive Vikram Pandit.
Repayments
Net income was reduced considerably thanks to a net loss of $424m on the sale of its 10.1% stake in Turkish bank, Akbank.Retail banking revenues grew by 32% to $1.6bn as a result of higher mortgage revenues.
Citigroup's net credit losses fell $625m to $1.5bn, a 29% drop, as more of its customers were able to pay back money they had borrowed.
The bank also reduced the amount it released to cover loan losses to $984m, a 50% reduction compared with the same period last year.
While global consumer banking revenues in North America grew 4% to $5.1bn, international revenues fell 4% to $4.6bn, reflecting currency fluctuations, the bank said.
In March, Citigroup failed a "stress test" designed by the Federal Reserve to assess how well banks could withstand a financial shock.
Since then Citigroup has been increasing its reserves. Now the bank says its Basel 1 Tier 1 capital ratio - assets held in reserve as a buffer against financial troubles - is 12.7%, compared with 4.9% in March.
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Revenues were $18.6bn for the period April to June, down 10% on the same period last year. But in an indication that the US credit market is improving, the bank was able to reduce provision for bad debts from $27.6bn to $34.4bn. And earnings per share were $0.95, above analysts' expectations.
Our core businesses performed well in a difficult environment," said chief executive Vikram Pandit.
Repayments
Net income was reduced considerably thanks to a net loss of $424m on the sale of its 10.1% stake in Turkish bank, Akbank.Retail banking revenues grew by 32% to $1.6bn as a result of higher mortgage revenues.
Citigroup's net credit losses fell $625m to $1.5bn, a 29% drop, as more of its customers were able to pay back money they had borrowed.
The bank also reduced the amount it released to cover loan losses to $984m, a 50% reduction compared with the same period last year.
While global consumer banking revenues in North America grew 4% to $5.1bn, international revenues fell 4% to $4.6bn, reflecting currency fluctuations, the bank said.
In March, Citigroup failed a "stress test" designed by the Federal Reserve to assess how well banks could withstand a financial shock.
Since then Citigroup has been increasing its reserves. Now the bank says its Basel 1 Tier 1 capital ratio - assets held in reserve as a buffer against financial troubles - is 12.7%, compared with 4.9% in March.
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Saturday, July 14, 2012
BAC & Citigroup Stock outlook july 16-20 2012
BAC & Citigroup Stock outlook july 16-20 2012 : Bank of America Corporation (BAC) & Citigroup, Inc. (C) : The money center bank stocks are up significantly on the heels of two great earnings reports JPMorgan (JPM) and Wells Fargo (WFC). These were buy the news events as the doom and gloomers have recently taken control of market sentiment sending it to the bottom of the barrel.
The fact of the matter is U.S. banks are in great shape. How soon we forget last quarter's earnings reports from the banks were positive. The U.S. bank have been through the Fed's stress tests, downgraded by Moody's and had their earnings expectations lowered significantly. I see both Citigroup and BAC beating expectations and moving higher. Please review the following fundamental and technical analysis of the two stocks.
BAC is trading well below its consensus estimates and its 52 week high. The company is trading 24% below its 52 week high and has 33% upside based on the analysts' consensus mean target price of $10.36 for the company. BAC was trading Friday for $7.79, up over 4% for the day.
Fundamentally, BAC has several positives. The company has a forward PE of 7.63. BAC is trading for 1.69 times free cash flow and approximately one third of book value. EPS next year is expected to rise by 75%. Insider ownership is up 93% over the past six months.
BAC is in a solid uptrend posting higher highs and higher lows since mid-May. The stock has been under accumulation as is poised to break out to the upside based on a positive earnings report. The U.S. housing market is on its way to recovery and should underpin BAC's results. I like the stock here.
Citigroup is trading well below its consensus estimates and its 52 week high. The company is trading 34% below its 52 week high and has 52% upside based on the analysts' consensus mean target price of $40.39 for the company. Citigroup was trading Friday for $26.66, up over 5% for the day.
Fundamentally, Citigroup has several positives. The company has a forward P/E of 5.54. Citigroup is trading for 1.54 times free cash flow and less than half of book value. EPS next year is expected to rise by 14.86%. Insider ownership is up 30% over the past six months and the company pays a dividend with a yield of .16% and has a PEG ratio of 0.82.
Citigroup's stock is flat on the year. The stock recently bounced off the $25 level for the third time in the last 12 months effectively putting in a triple bottom. The 200 day sma is leveling off at the $30 mark. I see the bank up significantly within a year's time. I expect Citigroup to break above $30 in short order and hit $50 within the next 18 months. I'm a buyer here.
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The fact of the matter is U.S. banks are in great shape. How soon we forget last quarter's earnings reports from the banks were positive. The U.S. bank have been through the Fed's stress tests, downgraded by Moody's and had their earnings expectations lowered significantly. I see both Citigroup and BAC beating expectations and moving higher. Please review the following fundamental and technical analysis of the two stocks.
BAC is trading well below its consensus estimates and its 52 week high. The company is trading 24% below its 52 week high and has 33% upside based on the analysts' consensus mean target price of $10.36 for the company. BAC was trading Friday for $7.79, up over 4% for the day.
Fundamentally, BAC has several positives. The company has a forward PE of 7.63. BAC is trading for 1.69 times free cash flow and approximately one third of book value. EPS next year is expected to rise by 75%. Insider ownership is up 93% over the past six months.
BAC is in a solid uptrend posting higher highs and higher lows since mid-May. The stock has been under accumulation as is poised to break out to the upside based on a positive earnings report. The U.S. housing market is on its way to recovery and should underpin BAC's results. I like the stock here.
Citigroup is trading well below its consensus estimates and its 52 week high. The company is trading 34% below its 52 week high and has 52% upside based on the analysts' consensus mean target price of $40.39 for the company. Citigroup was trading Friday for $26.66, up over 5% for the day.
Fundamentally, Citigroup has several positives. The company has a forward P/E of 5.54. Citigroup is trading for 1.54 times free cash flow and less than half of book value. EPS next year is expected to rise by 14.86%. Insider ownership is up 30% over the past six months and the company pays a dividend with a yield of .16% and has a PEG ratio of 0.82.
Citigroup's stock is flat on the year. The stock recently bounced off the $25 level for the third time in the last 12 months effectively putting in a triple bottom. The 200 day sma is leveling off at the $30 mark. I see the bank up significantly within a year's time. I expect Citigroup to break above $30 in short order and hit $50 within the next 18 months. I'm a buyer here.
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Tuesday, January 17, 2012
Citigroup Profit and Revenue report jan 17 2012
Citigroup Profit and Revenue report jan 17 2012 : US banking giant Citigroup has reported a profit of $11.3bn (£7.3bn) for 2011, up 6% on the previous year. However, fourth-quarter profit fell 11%, as revenue declined on the back of slower capital markets and rising operating expenses.
The third-largest US bank by assets reported net income of $1.16bn (£753m), down from $1.31bn a year earlier. Separately, Wells Fargo bank reported a 21% rise in final quarter profits to $4.1bn against a year ago. It highlighted an increase in loans and deposits as a reason for the improved performance.
Falling revenue
Citigroup's chief executive, Vikram Pandit, said: "Overall, we made solid progress in 2011." He said the firm had "reached key benchmarks in our consumer businesses, showing our strategy is achieving results".
However, he acknowledged that the tough economic environment had affected some parts of the business. Revenue at Citigroup in 2011 fell to $78.4bn compared with $86.6bn the previous year.
Revenues at the group's asset management and brokerage business fell by 33% to $12.9bn. The results were worse than analysts had expected and Citi shares fell more than 5% in early trading on Wall Street.
Big US investment banks have been hit by the turmoil in global financial markets caused in part by the eurozone debt crisis. "Europe remains a dark cloud," said John Gerspach, Citi's chief financial officer. However, he added that the bank had hedged its positions in the region well, and was "highly confident" losses would be contained.
Late last year, Citi said it would cut 4,500 jobs around the world to reduce its costs. Last week, JP Morgan also reported a drop in fourth-quarter profits.
The bank made a profit of $3.7bn in the period, down by almost a quarter on a year earlier. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
The third-largest US bank by assets reported net income of $1.16bn (£753m), down from $1.31bn a year earlier. Separately, Wells Fargo bank reported a 21% rise in final quarter profits to $4.1bn against a year ago. It highlighted an increase in loans and deposits as a reason for the improved performance.
Falling revenue
Citigroup's chief executive, Vikram Pandit, said: "Overall, we made solid progress in 2011." He said the firm had "reached key benchmarks in our consumer businesses, showing our strategy is achieving results".
However, he acknowledged that the tough economic environment had affected some parts of the business. Revenue at Citigroup in 2011 fell to $78.4bn compared with $86.6bn the previous year.
Revenues at the group's asset management and brokerage business fell by 33% to $12.9bn. The results were worse than analysts had expected and Citi shares fell more than 5% in early trading on Wall Street.
Big US investment banks have been hit by the turmoil in global financial markets caused in part by the eurozone debt crisis. "Europe remains a dark cloud," said John Gerspach, Citi's chief financial officer. However, he added that the bank had hedged its positions in the region well, and was "highly confident" losses would be contained.
Late last year, Citi said it would cut 4,500 jobs around the world to reduce its costs. Last week, JP Morgan also reported a drop in fourth-quarter profits.
The bank made a profit of $3.7bn in the period, down by almost a quarter on a year earlier. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Saturday, January 14, 2012
Citigroup Inc.financial results Estimates report january 17 2012
Citigroup Inc.financial results Estimates report january 17 2012 : Citigroup Inc. (C) is scheduled to release last fiscal quarter's results before the opening bell on January 17, 2012.
Citigroup, Inc., a global financial services company, provides consumers, corporations, governments and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The company was founded in 1812 and is based in New York, New York. Citi trades an average of 45.5 million shares per day.
52 Week High: $49.60
52 Week Low: $21.40
Book Value: $60.67
Float Short: 1.45%
On average, 16 analysts are expecting a drop of $-0.73 in earnings per share compared to last quarter's results of $1.23. Investors will be looking to top $0.50 per share, based on the estimated mean earnings.Analyst estimates range between $0.41 and $0.64 per share.
The current trailing twelve months P/E ratio is 8.4. The forward P/E ratio is 7.24. Citi has moved off recent lows to trade above the 60 and 90 day moving averages. Citi is still well below the highly watched 200 day moving average, but if investors hear some upside surprises in this tough economy we may see a breach of the 200MA.
The bottom line has rising earnings year-over-year of $10.60 billion for 2010 vs. $-1.61 billion for 2009.
Gross reported revenue compared to the mean estimate (rounded).
M = millions, B = billions
Differences are rounded. (Some one-time items are often excluded in reported EPS.)
Reported earnings per share compared to the mean estimate. Differences are rounded.
The total short interest number of shares for C.
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Citigroup Inc shares outlook jan 17 2012, Citigroup Inc stock prices forecast 2012, Citigroup Inc. Citigroup Inc earning forecast, Citigroup Inc q3 result jan 17 2012, Citigroup q3 results jan 17 2012
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Citigroup, Inc., a global financial services company, provides consumers, corporations, governments and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The company was founded in 1812 and is based in New York, New York. Citi trades an average of 45.5 million shares per day.
52 Week High: $49.60
52 Week Low: $21.40
Book Value: $60.67
Float Short: 1.45%
On average, 16 analysts are expecting a drop of $-0.73 in earnings per share compared to last quarter's results of $1.23. Investors will be looking to top $0.50 per share, based on the estimated mean earnings.Analyst estimates range between $0.41 and $0.64 per share.
The current trailing twelve months P/E ratio is 8.4. The forward P/E ratio is 7.24. Citi has moved off recent lows to trade above the 60 and 90 day moving averages. Citi is still well below the highly watched 200 day moving average, but if investors hear some upside surprises in this tough economy we may see a breach of the 200MA.
The bottom line has rising earnings year-over-year of $10.60 billion for 2010 vs. $-1.61 billion for 2009.
Gross reported revenue compared to the mean estimate (rounded).
| Fiscal Quarter Ending Month-Year | Revenue Estimates | Actual | $ Difference | Difference % |
| Sep-11 | $ 19.25 B | $ 20.83 B | $ 1.58 B | 8.22% |
| Jun-11 | $ 19.89 B | $ 20.62 B | $ 735.70 M | 3.7% |
| Mar-11 | $ 20.55 B | $ 19.73 B | $ -820.20 M | -3.99% |
| Dec-10 | $ 20.32 B | $ 18.37 B | $ -1952.50 M | -9.61% |
| Sep-10 | $ 21.08 B | $ 20.74 B | $ -341.70 M | -1.62% |
M = millions, B = billions
Differences are rounded. (Some one-time items are often excluded in reported EPS.)
The total short interest number of shares for C.
The number of days to cover short interest based on average daily trading volume for C.
source : http://seekingalpha.com
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Citigroup Inc shares outlook jan 17 2012, Citigroup Inc stock prices forecast 2012, Citigroup Inc. Citigroup Inc earning forecast, Citigroup Inc q3 result jan 17 2012, Citigroup q3 results jan 17 2012
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