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One of the largest financial holdings in the United States, Citigroup, reported on the results of the fourth quarter of 2022. The data turned out to be ambiguous – but it was difficult to expect anything else:
The decrease in the volume of the loan portfolio against the background of the closure of a number of retail units negatively affected the component of net interest income – the indicator could have been higher.
The “thin” place in the reporting was expected to be the revenue component from investment banking services. The indicator fell by 58.5% and amounted to $645 million. This is due to a sharp decline in activity in the M&A sector in the world. Institutional clients allowed to increase revenue in this direction by 2.8%, retail banking and capital management brought another 5.4%.
Operating expenses decreased against the background of a high base of the previous period.
Citigroup continues to create reserves ($640 million) in case of possible credit losses, so part of the finances “leaks” here.
The corporation continues to pay dividends: the dividend yield on securities is 4-4.5%, which is one of the highest levels in the US banking segment.
We are moving our previous target for Citigroup securities in the range of $64-66 for the current year.
On the daily trading chart of Citigroup shares, the MACD indicator is growing in a positive zone and signals a purchase. The Stochastic oscillator has risen into the overbought zone and also signals a purchase.