The big news in Citi’s report was that it is exiting retail bank operations in several nations. These include a confirmed exit in Japan, as well as Costa Rica, Peru, Panama, Czech Republic, Egypt, Hungary and several other smaller countries. Citi is disbanding Banamex after results of its Mexico fraud investigation found illegal activities.
Citigroup shares closed at $49.90 ahead of earnings, with a 52-week range of $45.18 to $55.28. Citi showed that its book value per share was $67.31 (versus $66.76 in the second quarter of 2014 and $64.49 in the same quarter a year ago), and the tangible book value per share was $57.73 (versus $56.89 in the second quarter of 2013 and $54.52 in the same quarter a year ago).
Other data released with earnings were as follows:
- Basel 3 Tier 1 common equity ratio was 10.7%.
- Return on common equity was 6.5%.
- Allowance for loan losses was $16.9 billion.
- Net credit losses were $2.1 billion.
- Net interest margin was 2.91%.
- Legal and related expenses were $951 million.
Citi shares were indicated up 2% at $50.95 ahead of the opening bell on Tuesday morning. The consensus analyst price target prior to earnings was $59.13.
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