C - Citigroup Inc.
49.06 -0.39 (-0.79%)
After hours: 7:28PM EDT
Chart Events
Fast Stochastic
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 47.91 |
| Open | 48.14 |
| Bid | 49.05 x 1100 |
| Ask | 49.37 x 1000 |
| Day's Range | 47.82 - 49.68 |
| 52 Week Range | 32.00 - 83.11 |
| Volume | 22,621,779 |
| Avg. Volume | 32,560,717 |
| Market Cap | 102.946B |
| Beta (5Y Monthly) | 1.83 |
| PE Ratio (TTM) | 6.81 |
| EPS (TTM) | 7.26 |
| Earnings Date | Jul 14, 2020 |
| Forward Dividend & Yield | 2.04 (4.26%) |
| Ex-Dividend Date | May 01, 2020 |
| 1y Target Est | 61.10 |
Fair Value
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JPMorgan’s Traders Race Ahead in the Pandemic
(Bloomberg Opinion) -- The rising tide of pandemic relief money that’s oiling the wheels of finance has been a boon for those in the business of securities trading. Even as the wild market swings have subsided, activity has been buoyant as central banks and governments pumped trillions into economies. This may turn out to be one of the best environments for investment bankers generally, especially those who are buying and selling shares and bonds, but a standout company is emerging.After a record trading performance in first three months of 2020, JPMorgan Chase & Co. is on course to post a 50% jump in trading revenue in the second quarter, when compared with the same period a year ago, the New York giant’s co-president, Daniel Pinto, said last week. The reserved Argentine banker, who has helped JPMorgan move to the top of Wall Street’s rankings, was “very pleased” by the performance. That tells you how well things are going.Other trading firms are doing well too, although not as handsomely as Pinto’s employer. Bank of America Corp. expects bond- and stock-trading revenue to rise close to 10% in the period; Citigroup Inc. is seeing “very good momentum” in the fixed-income business after a 40% jump in the first quarter. Citi is still playing catch-up with its rivals in equities trading.JPMorgan might also be edging further ahead of its European rivals on their home patch. The bank is the favored dealer in Europe for both interest-rate and credit trading, ahead of Goldman Sachs Group Inc. and Citi, according to a poll of bond investors by Greenwich Associates at the end of April. European banks barely made it into the top three in some of Greenwich’s subcategories on fixed-income trading.“It’s a balance sheet, scale and electronification game now, and the bigger you are, the better you do,” Greenwich Associates said when the report was published. That’s propelling JPMorgan — which spends more than $11 billion a year on technology — ahead of its competitors.America’s biggest bank added 2.5 percentage points to its share of trading revenue among its top peers between 2015 and 2019. It has a 12% share of trading in fixed-income, currencies and commodities, an 11% share of equity trading, and a lead in derivatives. That places it at the center of the world’s financial markets. Its ability to move large volumes of inventory is unrivaled, competitors and clients say.Last year, JPMorgan added 25% to its hedge-fund balances, bringing them to $500 billion, and it has been targeting $1 trillion. This growth in hedge fund clients has allowed it to build its stock-trading business, with equity derivatives powering a surge in revenue. It helps too that borrowers have been tapping the bond markets at a record pace.Crucially, it’s the bank’s market dominance — which lets it take on more risk relative to its size — that appears to have become self-perpetuating. “We don't need to take a huge amount of risk for the franchise to be profitable,” Pinto told a conference last week. “At our scale, the franchise is perfectly profitable. So, the only thing we need to do is to always be in a position where we can monetize the franchise.”For Chief Executive Officer Jamie Dimon, a roaring trading division is just what he needs to make up for the inevitable problems in the lending business caused by the Covid-19 pandemic, with companies and households struggling to repay their loans amid the worst recession in decades. Credit losses will pile up and the decline in U.S. interest rates will erode profit margins in the business over time. JPMorgan’s profitable consumer business won’t be such a cash cow.But when the wave recedes, the Wall Street trading titan could be in a league of its own. The question then becomes: Is that healthy for the banking system? This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Wall Street stands to lose tens of billions of dollars in China from deteriorating relations between world's two largest economies
Wall Street giants such as Goldman Sachs and JPMorgan Chase have tens of billions of dollars at stake in China as political tension risks derailing the nation's opening of its US$45 trillion financial market.Five big US banks had a combined US$70.8 billion of exposure to China in 2019, with JPMorgan alone ploughing US$19.2 billion into lending, trading and investing. That's a 10 per cent increase from 2018.While their assets in the country are comparatively small, they have big expansion plans there that may come undone if financial services firms are dragged into the tit-for-tat between the two countries. Not only would that cloud their growth plans, it would also threaten the income they have generated over the years from advising Chinese companies such as Alibaba Group Holding.Profits in China's brokerage industry could hit US$47 billion by 2026, Goldman estimates, with foreign firms gunning for a considerable chunk. 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Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its "full force" to the country. This year it applied for full control of an asset management firm as well as a securities venture, and is expanding its office space in China's tallest skyscraper in downtown Shanghai.JPMorgan's China total exposure in 2019 was US$19.2 billion, including US$11.3 billion in lending and deposits and US$6.5 billion in trading and investing.JPMorgan China's banking unit had 47 billion yuan in assets last year and made a profit of 276 million yuan, while its newly started securities firm had capital of 800 million yuan.A JPMorgan spokeswoman declined to comment.Citigroup, which has been doing business in China since 1902, had total exposure to the country of US$18.7 billion at the end of last year. 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It plans to apply for additional licenses to broaden its products and invest in new businesses, build market-making capability and expand its asset management partnership and ultimately take control.“It’s a natural evolution to bring the global investment banks into this market,” Gorman said in May last year.A Morgan Stanley spokesman declined to comment.JPMorganThe biggest U.S. bank has been doing business in China since 1921. Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its “full force” to the country. This year it applied for full control of an asset management firm as well as a securities venture, and is expanding its office space in China’s tallest skyscraper in downtown Shanghai.JPMorgan’s China total exposure in 2019 was $19.2 billion, including $11.3 billion in lending and deposits and $6.5 billion in trading and investing.JPMorgan China’s banking unit had 47 billion yuan in assets last year and made a profit of 276 million yuan, while its newly started securities firm had capital of 800 million yuan.A JPMorgan spokeswoman declined to comment.CitigroupCitigroup Inc., which has been doing business in China since 1902, had total exposure to the country of $18.7 billion at the end of last year. Its local banking arm had total assets of 178 billion yuan, making a profit of 2.1 billion yuan.Citigroup, which is setting up a new securities venture in China, is the only U.S. lender that has a consumer banking business in the country with footprint in 12 cities including Beijing, Changsha and Chengdu.New York-based Citigroup said last month that it has doubled its overall revenue from China to more than $1 billion over the past decade.China represents 1.1% of Citi’s total global exposure and includes local top tier corporate loans and loans to US and other global companies with operations in China, a bank spokesman said.Bank of AmericaBank of America Corp., the only major bank to decide against pursuing a securities joint venture, is continuing to expand into the world’s second-largest economy. The Charlotte, North Carolina-based lender is looking to provide a fuller range of fixed income services in the country.Its largest emerging market country exposure in 2019 was China, with net of $15.6 billion, concentrated in loans to large state-owned companies, subsidiaries of multinational corporations and commercial banks. It followed only the U.S., U.K., Germany, Canada and France in terms of exposure for the bank.A spokeswoman for the bank declined to comment.(Adds Trump comments in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Citigroup Inc looks to reopen its New York headquarters to a small number of employees as soon as July, with workers returning to London offices even earlier, Chief Executive Officer Michael Corbat told Bloomberg News in an interview https://www.bloomberg.com/news/articles/2020-05-28/citi-s-corbat-maps-out-june-july-reopening-amid-commuting-fear. Corbat said on Thursday the return will be "granular, site-by-site and within those sites, job-by-job", adding that July is a tentative target for returning about 5% of about 12,000 employees at Citigroup's main building in Manhattan's Tribeca neighborhood. Staff returning to work will begin next month at the Canary Wharf complex in London, he added.
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(Bloomberg) -- Citigroup Inc. plans to reopen its New York headquarters to a small number of employees as soon as July, and workers will return to London offices even earlier, as Chief Executive Officer Michael Corbat gingerly pushes the bank forward into a world reshaped by the coronavirus pandemic.“It’s going to be driven by data, it’s likely to be slow, it’s going to be granular, site-by-site and within those sites, job-by-job,” Corbat said in a Bloomberg “Front Row” interview. On a follow-up phone call, he said sometime in July or possibly August is when Citigroup hopes to return about 5% of the 12,000-odd staff at its main building in Manhattan’s Tribeca neighborhood. Re-entry will begin next month at the Canary Wharf complex in London.That timetable makes Citigroup one of first big banks to give clear guidance on one of the biggest dilemmas posed by the global outbreak: when to send people back to work. While the company has kept a few hundred essential employees on site since skyscrapers across New York cleared out in mid-March, the return of even a few bankers or traders from vacation homes in the Hamptons and the Rocky Mountains would send a signal that Wall Street is finding its footing again.New York, until recently the hottest hot spot for coronavirus, has used social distancing, mask-wearing and increased testing to dramatically reduce its infection and death rates. Now, like CEOs around the world, Corbat is trying to balance the demands of his business with the dangers of returning to old norms too quickly.“The conversations that I’m having are much more about the commute in urban areas, it’s getting on the train, it’s getting on the subway, it’s getting on the bus and it’s probably less about the workspace,” Corbat, 60, said from Wyoming, where he and his family went to escape the outbreak in New York. “The biggest hurdle we’re going to have is not getting people to operate in the office, it’s getting them to the office.”In Hong Kong, where the pandemic has been more contained, Citigroup only recently increased staffing to 50%. In London, some of the company’s 5,000 employees will start returning next week as part of a plan to repopulate offices by less than 10%.Yet Corbat was clear he doesn’t envision a virtual bank. Offices are necessary both for face-to-face meetings and because banking is an “apprenticeship business” that requires human interaction, he said. That’s why Citigroup is re-examining everything from turnstiles to cafeterias to elevators and is considering new locations in the New York suburbs for employees “who might be uncomfortable getting on mass transit” until a vaccine is widely available.Corbat also said he’s considering less business travel, especially after seeing how well Citigroup can serve clients in online meetings and conferences.JPMorgan Chase & Co. has said that offices will be staffed at no more than half of capacity for the foreseeable future. Bank of America Corp., meantime, plans to notify employees at least 30 days before they’re scheduled to return. Corbat, too, said he has told his workforce of 200,000, “You’re not going to wake up one morning or go to bed one evening with a blast email saying, ‘Tomorrow’s the day to come back.’”As much as it stirs anxiety, plays into political debates and captivates the public’s imagination, the question of when and how quickly to reopen is just one of the challenges Citigroup faces. Corbat also is wrestling with collapsing growth, record unemployment, rising tensions over global trade and the consequences of unprecedented aid and intervention by governments and monetary authorities.Citigroup added almost $5 billion to its bad-loan reserves in the first quarter, mostly in preparation for potential consumer defaults in the months ahead. At the same time, the bank may struggle to make money on new loans now that interest rates are near zero again and the Federal Reserve is considering yield-curve manipulation to keep borrowing costs down.Even less clear are the longer-term implications of ballooning deficits and central bank balance sheets.“We do not want our government in the U.S. or other governments to come out in a position where the debt at the federal level is untenable,” Corbat said. “We’re likely to be in this slower-growth environment for an extended period of time.”A decade ago, Citigroup was in no position to warn about imprudence. After loading up on risky debts and derivatives before the financial crisis, the bank needed two federal bailouts and became a poster child for Wall Street recklessness. At bottom, its shares lost 97% of their value.Now, Citigroup has comparatively ample capital and liquidity, and even during a pandemic Corbat is still thinking about expanding in Asia. Growing distrust of China in the West hasn’t curbed his ambitions there, nor has the Chinese government’s recent move to curtail rights and freedoms in Hong Kong.“China remains a very important place for a big number of our clients and so we’re going to make sure we’re there to support them,” Corbat said. “Between some of the political challenges and the health-care challenges, it hasn’t been easy, but we remain committed to Hong Kong.”(Adds details on plans for London offices in sixth graph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- MarketWatch
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- Bloomberg
Jamie Dimon Captures the Stock Market Moment
(Bloomberg Opinion) -- Don’t fight the U.S. Federal Reserve — repeat that mantra until it sticks.Jamie Dimon, the boss of JPMorgan Chase & Co., put it well this week. “This wasn’t the bazooka,” he said, referring to Jay Powell’s response to the coronavirus crisis. “The Fed took out the whole military and applied it. Just announcing these programs reduced spreads (the difference between corporate bond yields and their benchmarks) in the market. It’s going to save a lot of small businesses.” In the past month, the equity market’s glass has gone from pretty much empty to at least half full and that’s down to the coordinated fiscal and monetary effort from authorities far and wide. You want some quantitative easing? Please, have some more and take some for the journey home. Even those foot draggers at the European Union are talking about radical fiscal action. We won’t really see a V-shaped economic recovery, but it seems like we’ve stopped the L.Nonetheless, this is a recovery based so far on asset-price inflation rather than any economic data. Central bank and government action may have restored financial valuations but real incomes will still suffer dramatically for a long while to come. Unemployment and diminished consumption cannot be magicked away.The stock market is looking even further into the distance than usual to justify its valuations, which is sometimes hard to square away against a constant stream of dire economic statistics and evaporating company earnings. Since QE came to life during the global financial crisis, it has paid for investors to cast aside their usual forward-earnings analysis and focus instead on the rising tide of money. The central banks have learned their post-2008 lessons and have barely put a foot wrong this time. This is having uneven effects, however. The bulk of the stimulus is coming into investment-grade assets because that’s where central banks feel more comfortable. Credit spreads have recovered most in BBB and A-rated bonds. High-yield yield assets improved sharply at first, but this has abated. The spread between the yields on investment-grade debt and those of junk bonds is still nearly double the levels seen in February. Similarly, new debt issuance is motoring again but only for the better-quality names. While U.S. banks such as Citigroup Inc. and Wells Fargo & Co. are returning for the fifth or sixth time this year to replenish capital, the junk sector has been restricted to one-off selective deals — often with eye-watering yields.The change in stock market sentiment isn’t just about QE. The oil price collapse has come and gone and fears of a devastating second wave of Covid-19 are easing. Short-selling bans have quietly been lifted in several European countries too, and some of the recent improvement may be explained by that. The sound of economies cranking back into life can just about be made out over the whirring of the monetary printing presses, allowing even bombed-out old economy stocks to recover, not just the new technology darlings.Notably, some of the recent action has been in high-dividend stocks, which had been forced to skip shareholder payouts at the height of the crisis. Investors had feared that the dividend bans might last several years; now they think it may be a quarter or two. Many investment funds work off a dividend-yield model.Investment managers may be doing the natural thing right now and chasing the rising stock market indexes, but that doesn’t mean they’re brimful of confidence. The Bank of America fund manager survey for May shows extreme bearishness pervades, with only 10% expecting a V-shaped recovery and 68% expecting stock prices to fall. Given the recent positive news on the virus and the gradual ending of lockdowns, the June survey might be different.The fiscal response will determine how the economy recovers over the long term but the monetary triage has worked better than anyone could have expected in those ugly days of March. For that we should be grateful, and for the stock market’s semi-rational exuberance.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Poor capital allocation, unsatisfactory growth and narrowing moat are sell signals Continue reading...
- Reuters
Occidental is sued by shareholders, bondholders over Anadarko merger
Occidental Petroleum Corp has been sued by investors who claim they suffered billions of dollars of losses because the heavily indebted company concealed its inability to weather plunging oil prices, after paying $35.7 billion to acquire Anadarko Petroleum Corp. The proposed securities class action was filed late Tuesday in a New York state court in Manhattan on behalf of former Anadarko shareholders who swapped their stock for Occidental shares, and investors who acquired $24.5 billion of Occidental bonds that helped fund the August 2019 merger. Investors said Occidental should have disclosed in its stock and bond registration statements how quadrupling its debt load to $40 billion would leave it "precariously exposed" to falling oil prices, and undermine its ability to boost shale oil production and its common stock dividend.
