Citigroup Shares Rise as Evercore ISI Calls Results ‘Reasonable’
(Bloomberg) -- Citigroup shares gained as much as 1.4 percent on Monday to the highest intraday in a month, after the bank reported fourth-quarter adjusted earnings-per-share that beat analysts’ estimates and revenue that trailed.
It was a “pretty reasonable quarter,” Evercore ISI analyst Glenn Schorr wrote in a note, as net interest income, loans, and deposits each “grew nicely,” even as revenues “came in a little lighter” on some weakness in fixed-income trading. Schorr also flagged “good” Institutional Clients Group accrual businesses, rising M&A, branded cards showing “signs of life,” expenses falling more than revenues, “in check” credit, and a share count that dropped 8 percent.
“Yes a lower tax rate helped and there was a 3 cent tax benefit in the quarter, but we’d say that’s pretty good all-in results considering the backdrop in 4Q,” Schorr said.
Other large banks with pre-market declines were rising or trading little changed early Monday, including JPMorgan Chase & Co. and Wells Fargo & Co., both due to report on Tuesday. Citigroup’s call begins at 10am; for more analysis of the results and the call, click here for our TOPLive blog.
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