Monday, April 14, 2014

Citi released quarter one of 2014's earnings today, beating analysts estimates in several categories. 
They reported Net Income of $3.94 billion, up 3.5% yoy.
 EPS was flat at $1.23, and revenue fell .06% to $20.12 billion over an expected $1.14 and $19.37 billion.
Fixed-income trading, as hinted by the CFO earlier this month, fell 18%, compared to a drop of 21% in JP Morgans firm.  Bond-trading results are expected to fall across the industry this year,mostly because investors are waiting for more clarity from the Fed on int rates.
 Their equity-trading rose by 13%, over JP's 3%. 
Mortgage origination's stumbled 71% to $5.2 Billion, again similar numbers are appearing across the big banks.

In par with my thesis, Citi did a great drop of cutting expenses, operating exp's falling 1.1% yoy, even while litigation costs remained high, and probably will in the future. ($945 million)
The loss in Citiholdings, which contains the bad assets from the Crisis, fell from -$798 last year to -$292 this quarter. The total assets in Citiholdings decreased 23%.

The CFO said they are still waiting to get a detailed report from the Fed about why their capital plan was rejected. 
They also noted a second possible fraud in mexico, only totaling $30 million and should all be recuperated.

The stock climbed 4.36% to $47.67, finally back past our buy-in price of $47.57.  

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