Author Topic: C - Citibank  (Read 187259 times)

John Hjorth

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Re: C - Citigroup Inc.
« Reply #640 on: September 12, 2018, 06:49:50 AM »
Citigroup Investor Presentation: CFO John Gerspach at Barclays Global Financial Services Conference [September 12th 2018].

2020 expected efficiency ratio at 53 percent, effective tax rate now expected to be lowered going forward to less than 24 percent in 2020 [earlier expected around 33 percent], thereby expected RoTCE of 13.5 percent in 2020 [earlier expected around 11 percent].

Longer term RoTCE raised from around 14 percent to around 16 percent.

- - - o 0 o - - -

To me, this is indeed good news.
« Last Edit: September 12, 2018, 06:56:41 AM by John Hjorth »
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villainx

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Re: C - Citibank
« Reply #641 on: September 12, 2018, 08:23:04 AM »
To me, this is indeed good news.

The update is primarily driven by repurchase, tax and cost cutting?

Has Citi been delivering on their targets? My memory is that they've been uneven, but improving of late.  Are the new targets realistic or aggressive?

racemize

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Re: C - Citibank
« Reply #642 on: September 12, 2018, 09:06:55 AM »
To me, this is indeed good news.

The update is primarily driven by repurchase, tax and cost cutting?

Has Citi been delivering on their targets? My memory is that they've been uneven, but improving of late.  Are the new targets realistic or aggressive?

I believe most of it is driven by the tax changes (both lower tax and the fact that they wrote off a lot of DTA).  Citi has been hitting targets in the last year or so, but not so good before that.

I think the new targets are very realistic.  If they aren't, then there is a big problem at Citi.  Their targets are below most others until 2020.  In some sense, this is good news, as we are only betting on them becoming average and can get very good returns from that.  In other words, easier to revert to the mean than to outperform.

villainx

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Re: C - Citibank
« Reply #643 on: September 12, 2018, 10:26:36 AM »
Their targets are below most others until 2020.  In some sense, this is good news, as we are only betting on them becoming average and can get very good returns from that.  In other words, easier to revert to the mean than to outperform.

That describes me!     :P
« Last Edit: September 12, 2018, 10:29:39 AM by villainx »