Citigroup earnings: Here's What Investors Can Expect

Today 5:35 PM ET (MarketWatch)

By Sital S. Patel

Citigroup Inc. (C) will release its first-quarter earnings on Monday at 8 a.m. Eastern. This is what investors can expect:

Earnings: The nation's third-largest bank by assets is expected to report net income of $3.56 billion, or $1.14 earnings per share, down from $3.8 billion, or $1.29 a share in the year-earlier period, according to analysts surveyed by FactSet.

Revenue: The bank is expected to report a decline in revenue. The consensus estimate is $19.47 billion for the quarter, compared to $20.5 billion a year ago.

Stock react: Shares are trading at $45.68, down 12% year-to-date and 17% below their 52-week high. Shares have lagged the Financial Select Sector SPDR Fund (XLF), which tracks financial stocks in the S&P 500 (SPX) and is down 2.7% year-to-date. Analysts have an average price target of $58.06, according to FactSet. Rival J.P. Morgan Chase & Co. (JPM) shares fell 3.7% after it reported earnings Friday.

Key issues: Citigroup warned investors this week that it may miss a key profitability target, after the Federal Reserve rejected its latest capital plan. The bank was referring to its target for return on tangible common equity, a figure that lets investors compare its profitability with that of its peers.

Legal issues: Watch for comments on legal expenses following some recent settlements, and for any news on the fraud case at its Mexican unit, Banamex.

Citi Holdings: Citi's "bad bank" has been a drag on earnings and management has worked hard to reduce its impact. Citi Holdings currently accounts for just 6% of all Citigroup assets.

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-Sital S. Patel; 415-439-6400; AskNewswires@dowjones.com

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April 11, 2014 17:35 ET (21:35 GMT)
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