Citigroup (NYSE: C) is scheduled to report its fiscal Q3 2023 results on Friday, October 13, 2023. We expect Citigroup
C
to beat the consensus estimates for revenues and earnings. The bank posted better-than-expected results in the last quarter, despite a marginal decrease in the total revenues to $19.44 billion. It reported a 16% y-o-y growth in the net interest income, more than offset by a 28% decrease in the noninterest revenues. While the NII was up due to higher outstanding loan balances and improvement in the interest rates, the noninterest income suffered due to a drop in investment banking fees and lower principal transactions income. We expect the same trend to continue in the third quarter. Our interactive dashboard analysis on Citigroup’s Earnings Preview has more details.
Our forecast indicates that Citigroup’s valuation is $56 per share, which is 36% above the current market price of around $41. Interestingly, Citigroup stock had a Sharpe Ratio of almost zero since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.23 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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