Citibank (C) is set to announce its fourth quarter earnings on 17th January. The company is expected to report conservative results due to excess expenses and tight credit situation. Its revenues are also expected to remain under pressure due to macro economic factors.
Expectations
Citibank is likely to report its quarterly earnings per share at $0.71 per share, down from $1.23 in earnings per share it had reported for the third quarter of the year. Its annual earnings for the financial year of 2011 is likely to be reported at $3.79 per share. Citibank is expected to maintain modest capital deployment rate.
Third Quarter Results
Citibank had reported its third quarter net income at $3.7 billion, while its core earnings per share stood at $0.61. The company had reported its revenue for the quarter at $20.9 billion, up from $20.7 billion in revenue it had reported for the second quarter of the year. Citibank's non-interest expenses for the third quarter of FY e011 were reported at $12.7 billion. For the fourth quarter of the year, this figure is likely to stand at $12.8 billion.
Citibank is expected to report its fourth quarter revenue at $18.2 billion, while its non-interest income is expected to stand at $6.258 billion, down from $8.717 billion in non-interest income it had reported for the previous quarter of this financial year.
Earnings History
Citibank's full year earnings per share is expected to be at $3.92. The industry specialists have pegged the earnings per share for the Financial Year 2012 at $4.34, whereas it is expected to further improve its earnings per share for FY 2013 to $4.95. Citibank had reported its third quarter earnings per share at $1.2, whereas in the second quarter of the year it had reported its earnings per share at $1.09. The company currently pays $0.04 per share in dividend.
Out Take
Despite difficult external environment, Citi is expected to show steady growth. It is likely to maintain growth pattern in emerging markets, whereas its growth in the US will much more muted due to economic concerns. The company stock's price target has been set at $30.
