Bank results week: Earnings notes (Draft Analysis)
We will dive deeper once result season delivers by 21st when Goldman Sachs and some others like PNC and Sun Trust report earnings. Bank of America reports Tomorrow..
C ‘s loss of $0.33 per share is merely the payback being factored into the balance sheet. The credit losses were only $800 million.
Foreclosures will barrel down, Funds will not be cheap, their international operations cannot be contained or governed by local US law. Also domestic Citi business will turn profitable by Q3 and International Biz volume will exceed expectations
As per Marketwatch.com reports, also
“”Provisions and charge-offs were lower than we expected, suggesting that Citi’s ‘s outlook for its loan book has improved, particularly in corporate and international portfolios,” Standard & Poor’s analysts said in report to clients on Tuesday. “We think the pace of reserve building will continue to slow, allowing for an earnings improvement in 2010, the analysts concluded.””
Draft: Check our http://stocks.advantages.us for results based commentary
strangely enough, i have stuck to NY times for the result extract body..but the only thing of note below is the GCB profits of $1.6 billion which are based on hiding Card and other unsecured loan losses of $10 billion
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Bank executives say a speedier recovery in Asia and parts of Latin America has helped consumer loan losses. But amid double-digit unemployment and a weak housing market, the North American mortgage and credit card businesses keep hemorrhaging money — albeit, at a slower pace.
“Whether these trends continue will depend on the U.S. economy,” said John Gerspach, Citigroup’s chief financial officer.
Mr. Gerspach warned that stiffer credit card regulations would present a considerable headwind and the fate of the administration’s mortgage modification could significantly impact results. That program, by allowing the bank to delay booking losses on borrowers that fall behind on their loans, reduced credit losses by about $200 million in the fourth quarter.
Citigroup’s global consumer banking business posted a $1.9 billion profit for 2009, though that significantly overstated the performance of its mortgage and credit card businesses. For reporting purposes, the bank does not include its big mortgage, consumer finance and private-label credit card businesses. Those businesses, under the category of “Local Consumer Lending,” lost about $10 billion in 2009.
Over all, Citigroup’s investment bank reported the best results, though it still lagged competitors. Profit in the unit rose to $2.4 billion, up 6 percent from 2008. Although trading revenue surged in the first half of the year, it started to fizzle in the third and fourth quarters as the markets recovered. Its results also swung wildly from quarter to quarter from the impact of an obscure accounting charge on bank-issued debt, known as credit valuation adjustment, based on the perception of Citigroup’s financial health.
Mr. Gerspach said the figures needed to be adjusted again at the end of the year — lowering earnings by $840 million. “We corrected a mechanical miscalculation,” he said on the conference call.