Citigroup is back

Guess who's back, back again
Citi's back, tell a friend
Guess who's back, guess who's back,
guess who's back, guess who's back,
guess who's back, guess who's back,
guess who's back...

"Citigroup said it earned $4.4 billion after payment of preferred dividends, compared with a loss of $696 million a year earlier. That was the bank's biggest quarterly profit since the second quarter of 2007."

"Citigroup's strong showing follows similarly impressive results last week by Bank of America Corp. and JPMorgan Chase & Co. That has boosted hopes that the worst of the credit crisis has passed and banks may be entering a period of sustained profitiability."

It has already relieved some of the stress Goldman's SEC case has put on the market. I bet (and hope) recruiting rebounds slightly by September if the banks continue post big earnings and reduce commercial defaults.

How do the rest of you feel about Citigroup returning to profitability?

Comments (36)

Apr 19, 2010
Apr 19, 2010

It reminds me of my colleague. Last December he lost 5 grand in the Vegas casinos and over St Patty's weekend he won $2800. I am happy for Citi but at the same time, I don't think they should even be put in the same sentence as JP Morgan. They have a long way to go.

Apr 19, 2010

Perhaps not in the same league as other banks for the moment... but let's not forget how fast things can change on Wall Street.

On the other hand, anyone see any issues with a general LONG Citigroup investment strategy? Plan on dumping a significant portion of savings... but waiting to see if I can get a cheaper price if the market does execute a slight correction.

Apr 19, 2010

I'm also curious about Citi long. Also will Citi have to/ or willingly continue to sell off assets now that they have 'returned to profitability'? If I was Vikram I'd hold onto some of the troubled assets they have been shopping and ,since Citi is no longer insolvent, wait to sell or wait until the assets/investments rebound

Apr 19, 2010

still has a long way to go, it needs to expand the banking biz, the net profit in banking division is down from a year ago

on the other hand, JPM plans to hire 9000 people globally this year for its institutional biz

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Apr 19, 2010
runningcitylikediddy:

on the other hand, JPM plans to hire 9000 people globally this year for its institutional biz

can you link the article on this

Apr 19, 2010

I'm still looking for a reason why I shouldn't have bought $1000 worth of C when it was at a $3 level to keep for many years to come. Everyone I've talked to is always like "oh yeah I'd never do that blah blah" but I don't see why not. We already know that the government is not going to let them fail. I'm 22 years old, could end up keeping it for 15 years or more. Who knows where it could end up.

Apr 19, 2010
apple1634:

I'm still looking for a reason why I shouldn't have bought $1000 worth of C when it was at a $3 level to keep for many years to come. Everyone I've talked to is always like "oh yeah I'd never do that blah blah" but I don't see why not. We already know that the government is not going to let them fail. I'm 22 years old, could end up keeping it for 15 years or more. Who knows where it could end up.

Seriously. Remember when it was 99c last year this time? with no financial or investing experience EVEN I knew financial stocks would rebound. If only I had money to invest... :(

Apr 19, 2010

I know i was lucky enough to buy it at 99 cents last year, and rode some of that wave and sold off. I am in no means trying to toot my horn, because I am a shitty investor. But I really think people were stupid not to buy it. I'm really glad I didn't listen to the mainstream opinion.

Apr 19, 2010

Most interesting aspect of C's earnings release was the fact that investment banking revenues dropped 34% in contrast to the performance of similar divisions at JPM and BoaML

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Apr 19, 2010

i think the assessment was that there was a chance the government could take control of citi and totally demolish the remnants of its share price. In fact that was almost inevitable way back when and so no one would ever go near the stock.

Apr 19, 2010

yep. the reason the price was @ 99 cents was because people thought the gov't might take over and they might go bankrupt, so you really could have lost it all. thats why shares jumped so much when they said that they would back them. also, a long citi investment strategy is risky. the stock isn't climbing as fast as it was. i might just look recently, its been bouncing between $3 and $5 for the last 6-8 months or so...

"I just want to be a monkey of average intelligence who wears a suit. I'll go to business school!"

Apr 19, 2010

JP earned $3.3 b and Bofa Merrill put up $3.4 b right?

Apr 19, 2010

Citi's got a long way to go. Their brand's been tarnished pretty bad. They're still a premier debt shop and do get invited to all the major bake-offs - not to mention that they've got some of the smartest people in the industry working in IBD - but VCs and corporate boards don't trust them anymore. They'll be back, as there's a lot of talent there, but not now.

In fact you'll be hard-pressed to find many deals they've been on the left side of recently.

Apr 19, 2010

Are we really celebrating the "return" of a firm that should not exist if not for the US tax payer? An actual retard could make a profit with the help that Citi and the other banks received (and still are receiving).

Why are we cheering corporate welfare recipients, exactly?

Apr 19, 2010
Sickofassociate:

Are we really celebrating the "return" of a firm that should not exist if not for the US tax payer? An actual retard could make a profit with the help that Citi and the other banks received (and still are receiving).

Why are we cheering corporate welfare recipients, exactly?

would you prefer to cheer Goldman?

Apr 19, 2010
JohnnyCage:
Sickofassociate:

Are we really celebrating the "return" of a firm that should not exist if not for the US tax payer? An actual retard could make a profit with the help that Citi and the other banks received (and still are receiving).

Why are we cheering corporate welfare recipients, exactly?

would you prefer to cheer Goldman?

I'd prefer that people didn't "cheer" any of these firms as though they were sports teams. It's pathetic. It's made even more pathetic when a firm like Citi is cheered since it was saved from absolute destruction.

Goldman wouldn't be that much better despite all the shit PR they spew.

Apr 19, 2010

Because they can employ us?

Apr 19, 2010

Haha, Dimon still owns Sandy

Apr 19, 2010

Sickofassociate, so you are saying that US Government should've let Bear, ML, AIG, and Citi just fail? LOLz I'd pay to see the total financial chaos.

Apr 19, 2010

Wtf are you foos saying? Don't put Citi and JPM in the same sentence? Ha. Them JPM nigz weren't shit in 06 when Shitigroup were killing it in everything. Shiti has done a sick job retaining talent and it's no surprise those boyz are making it rain again.

Apr 19, 2010

06?.... that was 4 yrs ago.... Stop dwelling on the past.

"Damn Homie, in highschool you was the man Homie, the f*ck happened to you?" - 50 Cent

Apr 19, 2010
Hustlenomics:

06?.... that was 4 yrs ago.... Stop dwelling on the past.

"Damn Homie, in highschool you was the man Homie, the f*ck happened to you?" - 50 Cent

you did not just quote 50 cent on your first post...it's not like Citi is the girl you could have slept with junior year.

it shows achievement in a different market environment and how with consistent or growing talent it could possibly be indicative of future potential.

Apr 20, 2010

More like "Citigroup is alive." Not back.

Apr 20, 2010

I think it will be a while before Citi is restored (if ever) to its previous level of glory.

Apr 20, 2010

Second one of the previous posters, sometimes people forget how quickly firms on wall street shift in terms of rep/pay/performance etc.

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Apr 19, 2010

Citi has endured and more, but a lot of the $4.4 came from one time events/mark ups which occurred this quarter... those events are not sustainable and are not indicative of the quality of the firm. That's the only reason they managed to out earn JP and Bofa.

That said... analyst reports in Jan were predicting flat earnings for the quarter and under $5 b for the entire year, just goes to show you there are some surprises left in this world. Citi's still got muscle.

Apr 19, 2010
GutShot:

Citi has endured and more, but a lot of the $4.4 came from one time events/mark ups which occurred this quarter... those events are not sustainable and are not indicative of the quality of the firm. That's the only reason they managed to out earn JP and Bofa.
.

Who gives a fuck about the bottom line? Are we investors? All that's important to us prestige dick riding nigz is what the revenues generated in Equities, FICC and IBD are, and looking at those revs for Citi proves that the big boyz are back in the game feel me?

Apr 20, 2010
AfricanPropTrader:
GutShot:

Citi has endured and more, but a lot of the $4.4 came from one time events/mark ups which occurred this quarter... those events are not sustainable and are not indicative of the quality of the firm. That's the only reason they managed to out earn JP and Bofa.
.

Who gives a fuck about the bottom line? Are we investors? All that's important to us prestige dick riding nigz is what the revenues generated in Equities, FICC and IBD are, and looking at those revs for Citi proves that the big boyz are back in the game feel me?

Stock compensation means we're investors. So yah, we're concerned about the bottom line.

Apr 20, 2010

For us it is all about who is closing deals at the end.

Apr 20, 2010

Keep in mind, Citi was "BACK" right before they fell flat on thier faces too. So, "BACK" to what is the question. They were once all high and mighty and fell to pieces, so point is it could happen again. Any time.

#

I am the Man. I Have the Plan. Follow Me to the Promised Land.

Apr 20, 2010

Does anyone here own the stock?

Apr 21, 2010

I worked at Citi- got there via an acquisition a bunch of years back. What a sack of sh*t that company is. Left hand doesn't know what the left pinky is doing, let alone the right hand. To be "onboarded" I had to fill out 3 or 4 different applications, one from each of the companies main acquisitions that were now separate divisions. The bureaucracy there was killer- everything was about covering your ass and if a mistake happened, to put some procedure/checklist in place to make sure "it never happens again." It got to the point where you had two people double checking one guys work, which did wonders for efficiency, and didn't do shiat for reducing mistakes.

The organization was just way too large, they made money despite their size, not because of it.

Apr 21, 2010
Comment

I just play to win...

Apr 20, 2010