Does C's dividend hike plan, post-clearing fed stress test, decent liquidity, and organizational overhaul make it worth considering now? Read on to know.
CNBC's "Power Lunch" is joined by Scott Chronert, U.S. equity strategist at Citigroup, to discuss his market outlook amid trade policy uncertainty, earnings expectations and more.
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Citigroup Inc. C has passed the Federal Reserve's 2025 stress test. Post-clearing the stress test, C now has the flexibility to return excess capital to shareholders via dividends and share repurchases.
Citigroup remains the cheapest large U.S. bank by price-to-book, justified by its higher risk profile and below-average profitability. Despite strong share performance, Citigroup's dividend yield is now less attractive, making earnings growth the main upside driver. Restructuring has improved efficiency and profitability, but asset quality and exposure to riskier markets/products remain concerns.
Citigroup remains well-capitalized, exceeding CET1 requirements even under severe stress scenarios. The U.S. large bank sector is facing a reduced regulatory environment with less strict stress tests, increasing the potential for larger capital returns. The stock still trades below TBV up at $91.52, even after the big snapback rally, while banking peers trade at multi-year high multiples.
C eyes leaner operations with 20,000 job cuts and $2-2.5B in cost savings targeted by 2026.
Citigroup (C) closed at $78.35 in the latest trading session, marking a +1.28% move from the prior day.
As JPM navigates IB softness and credit risks, can C's streamlined focus offer a stronger upside? Let us find out.
Citigroup sees Q2 markets and IB revenues rising despite tariff headwinds, boosting hopes for stronger fee income ahead.
Citigroup is reportedly preparing for a potential decline in consumer financial health by putting aside more provisions for credit losses. [contact-form-7] “Given the macro environment, etc.