Banking, finance, and taxes
Citi & Wells Fargo... A Tale of Two Earnings (C, WFC)
Published:
Last Updated:
Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) earnings are a bit different this morning. Today looks like a prime example of “the good bank versus the bad bank.”
Citigroup reported that earnings fell 11% and its earnings came in at $0.38 EPS versus estimates of $0.49 EPS. Keep in mind that many bank earnings expectations had been cratering in the weeks prior to the actual news. Still, the figures were short. The “bad bank” asset unit of Citi Holdings managed a narrower loss of -$806 million versus a loss at -$1.02 billion in the fourth quarter of 2010. There is some good news this morning. That makes two profitable years now for Citi.
Wells Fargo & Co. (NYSE: WFC), now the healthiest of earners in the ‘new bank operating environment,’ managed to show a 20% earnings gain of 20% to $4.11 billion. The boost was said to be from gains related to mortgage financing, but the translation was $0.73 EPS versus estimates of $0.72 EPS. The loan loss provision was down again, close to $2 billion from $3 billion a year earlier.
Citigroup shares are indicated down over 4% at $29.45 in pre-market trading. Citi’s 52-week range is $21.40 to $49.60 and shares were up over 15% year to date. The bank reported book value of $60.78 and a tangible book value of $49.81.
Wells Fargo was negative at first but shares are now up 0.9% at $29.88 in the pre-market. Its 52-week range is $22.58 to $34.25 and its stated book value was $24.64.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
