Back in the black still not good enough

first_img More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Back in the black still not good enough KCS-content whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Show Comments ▼ whatsappcenter_img Tuesday 18 January 2011 8:40 pm Tags: NULL THIS should have been a day of celebration. Citigroup, the bank that teetered on the brink during the crisis, turned a $10.6bn (£6.6bn) profit in 2010 – its first profitable year since Vikram Pandit took the helm in December 2007. But in the event it just wasn’t good enough. It missed expectations for profit quite spectacularly, posting fourth quarter per share profit of 4¢ against Wall Street expectations of 7¢. Citi blamed tightening credit spreads, which it said wiped some $1.1bn off fourth-quarter earnings.Even taking these charges into account, Citi still underwhelmed at the top line, with revenues of $18.4bn against expectations of $20.4bn.Until now, buying Citi shares at a discount to the bank’s tangible book was a clever value play, but now Pandit desperately needs to show he can build some earnings momentum. There was a solitary bright spot, however, which bodes well for the rest of the sector: credit quality has massively improved. Non-performing assets were down 13 per cent, while the bank posted its fifth sequential decline in writedowns.In truth, there is not much wrong with Pandit’s strategy. He is investing in the brand in emerging markets and waiting for significant earnings leverage from improving credit conditions. All he can do is build it, and hopefully it will come. Sharelast_img read more

Read More