C - Citigroup: Buying Into The Restructuring Plan
2024-06-22 01:46:01 ET
Summary
- Citigroup's performance metrics, such as ROTCE and tangible book value growth, vastly lag behind its peers. Therefore, its price to tangible book value remains low at 0.7x.
- Contrary to others, Citi has been the only major bank that has seen a decline in non-interest income over the last two Q1 results.
- However, their aggressive restructuring plan, which intends to divest from 14 markets and reduce headcount considerably, could potentially allow them to simplify their business and raise the price-to-TBV multiple.
- The restructuring plan might take several years to produce an effective response, but I am optimistic about this opportunity to turn around the profitability indicators of this bank.
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Citigroup: Buying Into The Restructuring Plan