Citigroup EPS expected to be worse

Citigroup continues to struggle and looks set to post weaker figures than from 12 months ago.

Citibank logo
Source: Bloomberg

Ahead of next week’s second-quarter figures, the markets are expecting Citigroup to announce its earnings per share (EPS) will be down by 14% year-on-year. Considering the general consensus that the company’s pretax profit is expected to be $4.879 billion, some 22% down from the equivalent 2013 figures, the shares have performed relatively well.

No bank has been unaffected by the changes in regulations governing cash debt ratios, and almost all have found themselves being fiscally punished for historical transgressions. Citigroup is not the exception to that rule, as it is currently facing a $7 billion fine for the mis-selling of mortgage products prior to the financial crisis.

In a similar template to many of its global competitors, Citigroup has also embarked on aggressive asset stripping over the last few years, selling off holdings in the Housing Development Finance Corporation, Akbank, EMI music and Pershing Square Capital Management.

The Citigroup shares price found itself stuck in a range between $46 and $50 for almost all of the last six months, and with the results and a possible sizeable fine looming there is every chance we will see the lower end of this range tested again.  

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.