Citigroup Posts Fiscal 2017 First Quarter Revenues of $18.12 Million

CitigroupThe stocks of Citigroup Inc (NYSE: C) gained approximately 3 percent this week which closed at $59 yesterday. The main reason for the increase in the prices of share is the 17% year on year increase in Q1 fiscal 2017 earnings reported last week.

The Citigroup stocks remain undervalued in spite of sizeable global exposure. So, we expect that shares would be bought on dips due to reasons discussed below.

The Institutional Clients Group revenue of the bank increased to $9.126 billion with 16% growth Y-O-Y.

This has enabled Citigroup to post revenue of $18.12 billion in fiscal 2017 first quarter compared to the figure of $17.56 billion in the same quarter last year.

Citi

The Corporate division performed poorly with a 40% Y-O-Y decline revenues to $1.18 billion else the revenue of Citigroup would have been much higher. On the bright side, the bank was able to beat the Wall Street estimate of $17.44 billion.

This New York-based bank reported an income of $4.12 billion in Q1 2017 as compared to $3.51 billion during the same period last year. There is a growth of 17% within one year. If we exclude the non-controlling interest and discontinued operations, the net income was $4.09 billion $1.35 per share in the recent quarter. If we compare the figure with the same period last year, the net earnings were $3.50 billion or $1.10 per share.

If we compare the performance of other banks, Citigroup has done exceptionally well in bond and currency trading desk section. The Investment Banking Division which is a part of Institutional Clients Group (ICG) registered an increase in revenue to $1.214 billion with 39% Y-O-Y growth. Similarly, the Fixed Markets Division, which is a part of ICG, reported revenue of $3.622 billion with 19% on Y-O-Y basis.

The Common Equity Tier 1 Ratio rose to 12.8%, and it signifies the ability of a bank to tolerate the economic shocks. The return on assets increased from 0.79% last year to 0.91% this year. The Supplementary Leverage Ratio of Citigroup at the end of Q1 2017 stands at 7.3%. By this strong performance, we can expect the stocks of this banking company to remain bullish.

If we see the price chart, it shows strong support for the stocks at 58.40. In addition to this, the shares are trading above 50 days moving average. The ascending money flow indicator shows the flow of money in the stock. Hence, as a trader, you can expect the uptrend to continue.

Citigroup Stock Price April 26th 2017

Citigroup Stock Price April 26th,2017

To make profits from this uptrend, you need to BUY a HIGH or ABOVE Option when the stock is trading around 59. You should set the expiry period around 4th of May to gain from this trade.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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