Citigroup Earnings Beat, but earnings miss weak trade; Citigroup Stock Falls

Citigroup (C) on Monday reported mixed fourth quarter results, kicking off a busy week for big bank shares. The Citigroup share withdrew the bank portfolio as bond trading became weak.

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Citigroup Earnings

Estimates: Wall Street expected Citigroup's earnings per share to jump 21% to $ 1.55. The Street saw revenue up 1% to $ 17.4 billion.

Results : Citigroup earnings of $ 1.61 a share of revenue of $ 17.12 billion. Consumer rail revenues were flat at $ 8.44 billion, as lending to individuals, and North American Citi-branded card revenues were flat. But interest income and markets rose 21% to $ 1.9 billion, while stock market revenues increased by 18% to $ 668 million. Investment banking revenues declined by 1% to $ 1.3 billion, while private banking revenues increased by 3% to $ 797 million.

"A volatile fourth quarter affected some of our market-sensitive businesses, especially Fixed Income," said CEO Michael Corbat. "But our ICG accrual operations – Treasury and Trade Solutions, Securities Services, Private Bank and Corporate Lending – continued their strong performance. And in Global Consumer Banking, we had good underlying growth in US branded cards and solid performance from our franchise in Mexico where we has invested. "

Citigroup Stock, Bank Stocks

Citigroup fell 1.7% in market trading on the stock market today. Stocks have rallied somewhat since Christmas Eve, along with the general stock market, but after the trend is lower almost throughout 2018. Relative Strength Line That Traces A Share's Performance vs. The S&P 500 index, declining from October 2017 to the end of December, almost underestimated the 2016 downturns.

Among other bank deposits, JPMorgan Chase (JPM) fell 1.2%. Bank of America (BAC) lost 1.2%. Wells Fargo (WFC) fell 0.8%.

Goldman Sachs (GS) fell 1.1%. Morgan Stanley (MS) fell 1.6%.

JPMorgan and Wells Fargo report Tuesday, BofA and Goldman are out Wednesday, and Morgan Stanley reports Thursday.

Global Stress On Bank Stocks

Bank shares limped to the finish line by the end of 2018, among worries about a recession, loan growth that has been too slow for Wall Street, a narrow treasury interest rate spread. Four Fed interest rate increases in 2018, forcing banks to pay more to borrow overnight to meet cash cushioning allowances, also squeezed bank profits.

As investors crawled to the sidelines, others worried about the impact on banks' investment banking activities. Trading revenues are also expected to be weak.

Citigroup is more exposed to international affairs than rival banks. Finance director John Gerspach said last month that the world economy remains solid, even among worries about trade tensions, China's economic growth, Brexit and upheaval elsewhere in Europe.

"When we take a look at even the macro environment, the founders still look pretty good, and I think there is a big link at this time between the market techniques and what we really look at the ground, he says.

Han la to the volatility of the market weakening the bank's interest-bearing business, but he said the equity business held firm, and the company is more exposed to Asia with Mexico and Latin America – where Venezuela and Brazil face political disturbances and destroyed economies – than Europe

"We haven't seen any real credit problems yet," Fred Cannon, research director at Keefe, Bruyette & Woods, said about turmoil in Latin America during an Friday interview. "But I would say that type of turmoil is potential credit problems.

"It is said that it is important to recognize how much stronger Citi balance is now versus, for example, before the financial crisis, he continued." They have five times the capital they did then. "

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