To The Moon

$Citigroup(C)$ released its Q1 2023 quarter earnings on Fri, 14 Apr 2023.

This post is a continuation from my previous two postings : (click to read)

• Citibank Q4 2022 Quarterly Earnings report.

• Thu, 13 Apr Post On Which Bank Has Best Earnings !

It will be “interesting” to

1. Find out Citibank’s Q1 2023 performance compared to its Q4 2022. Most analysts comparison will be YoY. This will be a different !

2. Find out if my 13 Apr 2023 post’s ranking predictions of the banks based off their Q4 2022 earnings were accurate.

• Revenue came in at $21.4 Billion vs $18.0 Billion (Q4 2022); that’s a +18.89% gain.

• Net Income was $4.6 Billion vs $2.5 Billion (Q4 2022), that’s a +84.0% gain.

• Diluted EPS was $2.19 vs $1.16 (Q4 2022), a +88.79% gain.

• ROE was 9.5% vs 5% (Q4 2022); that’s a +4% gain.

Revenue Mix “Contribution” From Business Segment :

• Institutional clients group makes up 52.4% of Citibank’s revenue, up from 41% (Q4 2022).

• Personal banking & Wealth Mgmt makes up 30.1% of bank’s revenue, down from 40.6% (Q4 2022), a -10.5% decline.

• Legacy franchises. Contributed 13.3% to bank’s revenue, down from 13.7% (Q4 2022), -0.40% decline.

• Corporate & others. Contributed 4.3% to bank’s revenue, down from 4.7% (Q4 2022), -0.4% decline.

Citibank Other Information :

Citibanks’ Other highlights :

• Book value per share was $96.59 vs $94.06 (Q4 2022); a +2.7% gain.

• Expenses have increased to $13.3 Billion from $12.9 Billion (Q4 2022); a +3.1% gain.

• Market revenue was $5.6 Billion vs $3.94 Billion (Q4 2022); a +42.13% increase !

• CET1 came in at 13.4% vs 13.0% (Q4 2022), meeting US banks latest CET1 requirement of 13.3% that came into effect in Oct 2022.

Summing Up My Viewpoints :

• Citibank has handed in an “excellent” report card with revenues and incomes bettering its last quarter and YoY results.

• Having said that, its “Personal banking & Wealth Mgmt” segment definitely had a “poorer” showing this quarter falling by -10.5% from Q4 2022.

• It did not manage to control its purse. Bank’s expenses has risen to $13.3 Billion from $12.9 Billion (Q4 2022) that was a “reduction from Q3 2022).

• Equity Markets that contribute to “Markets revenue” managed to rise to $1.1 Billion from $798 Million (Q4 2022). In the face of YoY comparison, its still down -25%, exposing the bank’s weak business segment.

• In my 13 Apr post, I have ranked Citibank as #1 in performances is inaccurate. Its actually ranked #2 when matched against $Wells Fargo(WFC)$ and $JPMorgan Chase(JPM)$ ; whom also reported their Q1 2023 quarterly earnings as well.

• Looking at Citibank’s past 1 year performance, the bank has managed to climb out of its “bottom out” price of $40.45 set on 11 Oct 2022.

• However, its still coming up a little short in terms of the “peak” stock price.

• With general consensus that US economy will be slipping into mid recession, it is highly doubtful that Citibank could stay above the resistant price of $54.56; its 52-week high.

• I will continue to monitor for a “good” entrance price. Just not at the moment !

• Do you think Citibank has handed in a “credible” report card on its earnings ?

• Do you think Citibank will be able to rise past its 52-week high of $54.56 ?

Please give a “LIKe” to this post ok. Thanks. Your rating is very important to me.

Alternatively, do consider “Follow me” so that you get first hand read of my daily new posts. Tks, Tks !

@TigerEvents

@Tiger_SG

@TigerPM

@CaptainTiger