Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

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Strategic Realignment Driving Potential for Improved Returns: Under CEO Jane Fraser, Citigroup is undergoing a significant multi-year transformation aimed at simplifying the bank, exiting non-core international consumer franchises, and focusing on five core, high-return businesses: Services, Markets, Banking, Wealth, and U.S. Personal Banking. The success of this ambitious restructuring is pivotal to closing the persistent profitability and valuation gap with its peers.</li>
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Valuation Appears Attractive Amidst Transformation: Citigroup trades at a notable discount to its tangible book value, a metric on which peers often trade at a premium. This valuation reflects market skepticism about its ability to achieve its targeted returns. If management successfully executes its strategy, there is a significant opportunity for a valuation re-rating.</li>
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Global Network Remains a Key Competitive Differentiator: The bank's extensive global footprint, particularly its world-class Treasury and Trade Solutions (TTS) business within the Services division, provides a distinct competitive advantage in serving multinational corporations. This network is difficult for competitors to replicate and generates a stable, high-return revenue stream.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Strategic Realignment Driving Potential for Improved Returns: Under CEO Jane Fraser, Citigroup is undergoing a significant multi-year transformation aimed at simplifying the bank, exiting non-core international consumer franchises, and focusing on five core, high-return businesses: Services, Markets, Banking, Wealth, and U.S. Personal Banking. The success of this ambitious restructuring is pivotal to closing the persistent profitability and valuation gap with its peers.
  
Valuation Appears Attractive Amidst Transformation: Citigroup trades at a notable discount to its tangible book value, a metric on which peers often trade at a premium. This valuation reflects market skepticism about its ability to achieve its targeted returns. If management successfully executes its strategy, there is a significant opportunity for a valuation re-rating.
  
Global Network Remains a Key Competitive Differentiator: The bank's extensive global footprint, particularly its world-class Treasury and Trade Solutions (TTS) business within the Services division, provides a distinct competitive advantage in serving multinational corporations. This network is difficult for competitors to replicate and generates a stable, high-return revenue stream.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Citigroup has released its fourth quarter earnings for 2024, showcasing a notable rise in net income by almost 40% to $12.7 billion for the full year, indicating positive momentum across key business segments.</li><li>This performance was coupled with a revenue increase of 5% excluding divestitures, supported by a 17% uptick in fee revenue, and an efficiency ratio improvement by 340 basis points, which highlights the company's operational improvements.</li><li>However, certain macroeconomic challenges remain persistent, such as China's slower-than-anticipated growth and Europe's underperformance.</li></ul>

Citigroup has released its fourth quarter earnings for 2024, showcasing a notable rise in net income by almost 40% to $12.7 billion for the full year, indicating positive momentum across key business segments.This performance was coupled with a revenue increase of 5% excluding divestitures, supported by a 17% uptick in fee revenue, and an efficiency ratio improvement by 340 basis points, which highlights the company's operational improvements.However, certain macroeconomic challenges remain persistent, such as China's slower-than-anticipated growth and Europe's underperformance.

Citigroup’s High-Stakes Banamex IPO Gambit: Can It Provide An Upside To Shareholders?

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

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<li>HSBC holds 19% of BoCom and still carries it with a value of USD23.3bn despite the stock market valuation putting it closer to USD8.1bn on YE22 figures. </li>
<li>The bank cites its Value In Use testing as the justifiable reason for this gap, and this testing will include major assumptions like discount rates and long term growth rates.</li>
<li>Goodwill and other intangible charges were USD10.6bn in FY08, USD3.4bn in FY16, and USD7.4bn in FY19 for HSBC. </li>
</ul>


HSBC holds 19% of BoCom and still carries it with a value of USD23.3bn despite the stock market valuation putting it closer to USD8.1bn on YE22 figures. 
The bank cites its Value In Use testing as the justifiable reason for this gap, and this testing will include major assumptions like discount rates and long term growth rates.
Goodwill and other intangible charges were USD10.6bn in FY08, USD3.4bn in FY16, and USD7.4bn in FY19 for HSBC. 


HSBC - Gap of USD15bn on Carrying Value Vs Fair Value of BoCom, as China Economy Weakens More

Citigroup’s Turnaround Playbook: Core Drivers Shaping Future Performance! - Major Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>Investors are disappointed with Citigroup's lackluster profitability compared to other large US banks, leading to a low valuation of 0.65x TBV</li><li>Potential for improvement as the company has excess capital and may be able to increase profitability to reach a 10% ROTE in the next two years</li><li>Predictions suggest that if Citigroup reaches its targets, there could be a significant increase in share value, with TBV/share reaching $100 and EPS of $10 by 2026, presenting a compelling investment opportunity for those willing to take a risk on the bank's future performance.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Investors are disappointed with Citigroup's lackluster profitability compared to other large US banks, leading to a low valuation of 0.65x TBVPotential for improvement as the company has excess capital and may be able to increase profitability to reach a 10% ROTE in the next two yearsPredictions suggest that if Citigroup reaches its targets, there could be a significant increase in share value, with TBV/share reaching $100 and EPS of $10 by 2026, presenting a compelling investment opportunity for those willing to take a risk on the bank's future performance.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Citigroup Inc (C) - Wednesday, Sep 18, 2024

United States

Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers. The Company services include investment banking, retail brokerage, corporate banking, and cash management products and services. Citigroup serves customers globally.

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Citigroup Inc (C US)

Primer: Citigroup Inc (C US) - Nov 2025

Strategic Realignment Driving Potential for Improved Returns: Under CEO Jane Fraser, Citigroup is undergoing a significant multi-year...

αSK

Citigroup’s High-Stakes Banamex IPO Gambit: Can It Provide An Upside To Shareholders?

Citigroup has released its fourth quarter earnings for 2024, showcasing a notable rise in net income by almost 40% to $12.7 billion for the full...

Baptista Research

HSBC - Gap of USD15bn on Carrying Value Vs Fair Value of BoCom, as China Economy Weakens More

HSBC still carries its 19% investment in BoCom at a very high value compared with the market value and with a far weaker China outlook, we are not...

Daniel Tabbush

Citigroup’s Turnaround Playbook: Core Drivers Shaping Future Performance! - Major Drivers

Citigroup has released its fourth quarter earnings for 2024, showcasing a notable rise in net income by almost 40% to $12.7 billion for the full...

Baptista Research

Citigroup Inc (C) - Wednesday, Sep 18, 2024

Investors are disappointed with Citigroup's lackluster profitability compared to other large US banks, leading to a low valuation of 0.65x TBV

Value Investors Club (VIC)

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