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Citigroup: not without risks

Citigroup: not without risks

15 February 2023

One of the top American banks attracted the attention of the capital market with the publication of financial statements.

According to the results of the IV quarter of 2022 , the bank reported as follows:

  • revenue +5.8% YoY to $18 billion, at the level of expectations;
  • net profit +20.8% YoY to $2.5 billion;
  • EPS $1.16, above forecasts;
  • ROE 5%;
  • non-interest income -23.6% to $4.7 billion.

Citigroup has a strong dividend position. The bank gives one of the highest returns in the sector, about 4%. Within the fourth quarter, Citigroup paid at least $1 billion to shareholders.

There are high risks in the US banking sector in the context of macroeconomics, but this is a common problem. Based on the published statistics, we can conclude that the US economy is adequately stable, which will allow the banking sector to maintain balance.

Citigroup relies on a reputable strong brand and excellent positions in a number of areas. For example, revenue from trading operations in the reporting quarter increased by 18.4% to $645 million, revenue from the direction of work with institutional clients expanded by 2.8% to $9.2 billion.

Business is very dependent on general economic parameters, but as the US economy stabilizes, the efficiency of the structure will increase.

The consensus forecast for Citigroup shares in the future of the year is $57-60.

On the daily trading chart of Citigroup shares, the MACD indicator is declining in a positive area and signals a sale. The Stochastic oscillator has pushed off from the oversold zone, is growing in a positive area and gives a buy signal.

15 February 2023
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