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C - Citibank


gordoffh

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It's pretty much the same as last year which is rather disappointing. Since the stock is under book, I would have preferred for C to up their share repurchase program while keeping the dividend flat. I am not impressed.

 

Citigroup [June 27th 2019] Citi Announces 2019 Planned Capital Actions.

 

Quarterly common stock dividend per share up from USD 0.45 to USD 0.51, and share repurchases in the next CCAR cycle of up to USD 17.1 B, a  total of USD 21.5 B during the 2019 CCAR cycle.

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It's pretty much the same as last year which is rather disappointing. Since the stock is under book, I would have preferred for C to up their share repurchase program while keeping the dividend flat. I am not impressed.

 

I somehow agree with you, ourkid,

 

Upping the buybacks instead of the dividends would also be my preference. The most important thing is still the bank's progress.

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Citigroup Inc. Press Release [July 15th 2019] : Second Quarter 2019 Results and Key Metrics.

 

Looks to me like C is just continuing doing its thing, minding its own business. So far, it seems to be on track on its promises.  Like that talkinghead Chief Engineer under the launches by SpaceX, looking to the right at the screen of his Mac : "... aand trajectory looks nominal!"

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Oh, oh, oh!  Do we have a new whipping-boy to replace WFC? 

 

SJ

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This stock is starting to look oversold at these levels.  If share buybacks are allowed like JPM is hinting towards in Q4 at any level, this should be the focus of the company. Huge discount to tangible book. Would be best return for dollar in the business.

 

There are other issues going on with regulatory reviews and risk management discussions as reported by WSJ and Barrons this week. I think these are being escalated given the sensitivities in the market versus the actual levity of the problem. I could be wrong but looks like a good value. Not as good as Wells Fargo but still value.

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It doesn't matter here what Valueact has done on the inner lines. Mr. Corbat has transformed - over the years - what was a train wreck of a bank - to a bank with some challenges. [Losses incurred during that "clean-up" period : USD 64.8 B!]

 

I would say : "Well done!"

 

I hope Ms. Fraser will continue the ongoing work to make C a better bank.

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I also think that Mr. Corbat has done a decent job at the helm of Citigroup.

He inherited a mess after the financial crisis and what I consider was terrible mismanagement on the Vikram Pandit years.

Mr. Corbat simplified the bank and made it much safer.

He recovered well from the fail CCAR test in 2014, and was able to repurchase over 30% of the outstanding shares in the last 4 years.

Banks have such a tough job these days.

You have analysts and investors giving Corbat a hard time every quarter for not reducing expenses enough and now that it transpires that they have an issue migrating systems to a more modern platform (for which they are investing 1B this year alone), the same people complains that they didn't invest enough.

Another example is this week when the CFO said that they expected to build some more reserves this quarter although at a significant lower rate than previous quarters, the analysts didnt like this because other banks have hinted that they will stop building reserves.

At the end of the day with the new accounting these reserves are only a rough estimation based in models for all the future expected losses of the loans in the books. Actual charge offs have been very muted in this recession so far for all the banks.

So if you are conservative and build reserves you get punished now and if you are not reserving enough you get complimented now but you would get punished on the other end when it becomes clear you didn't do enough.

 

 

 

 

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