Instant View: Citi first-quarter profit falls 32 percent

Reuters News
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Posted: Apr 18, 2011 8:27 AM

NEW YORK (Reuters) - Citigroup Inc's first-quarter profit fell 32 percent as the bank lost less money on bad loans. The third-largest U.S. bank said it earned $3.0 billion, or 10 cents per share. That compared with $4.4 billion, or 15 cents per share, a year earlier.

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Following is a selection of initial comments by analysts:

MICHAEL HOLLAND, FOUNDER OF HOLLAND & CO LLC

"It's more in line with BofA's results than JPMorgan's. JPMorgan continues to set the bar so high compared to the other banks. The numbers look okay relative to expectations, but it's a tough slog. I think the tepid loan growth is just confirmation of the expectations people have. "(Citi's results) show the healing process has begun, but it continues to be slow across the industry."

GARY TOWNSEND, CEO OF HILL-TOWNSEND CAPITAL

"It's not surprising that revenue is falling. I know that the market is giving great attention to that but both Bank of America as well as JPMorgan for that matter, as well as Citi all have disposition portfolios. Out of Citi Holdings you have a 33 percent decline in assets. That can't help but create some revenue drag. What is more important, frankly, is what is going on the credit side...because what that does is position them late this year or early next to start showing some very strong earnings. What I see is the expected progress."