Financial services giant Citigroup Inc. (C) is slated to release its third-quarter results before the market opens Monday.
While announcing the second-quarter results, Chief Executive Vikram Pandit had stated that the second quarter results demonstrate that the company has put in place all elements for sustained profitability.
Analysts polled by Thomson Reuters expect the company to make a profit to the tune of $0.06 per share, with estimates ranging between $0.04 and $0.09 per share. Analysts' estimates typically exclude special items.
Revenue for the quarter is estimated by analysts to be $21.15 billion, representing a 3.7% increase from the previous year.
In the same quarter a year ago, the S&P 100 company had reported a loss per share of $0.27 impacted by exchange offers that hit earnings by $0.18 per share. Revenues for the third quarter last year were $20.4 billion.
In its preceding second-quarter of this fiscal, the New York-based group reported net income $0.09 per share on revenues of $22.07 billion, and noted that net credit losses declined for the fourth consecutive quarter.
Citigroup was one of the worst hit banks during the subprime crisis and has received $45 billion in bailout money. In an effort to recover from the crisis, the company repaid $20 billion in stock and debt offering in December 2009.
The remaining $25 billion was converted to common equity, and the government received around 7.7 billion of the shares of the bank, in which around 2.6 billion was sold earlier this year and raised around $10.5 billion.
On September 29, the U.S. Department of the Treasury said it will sell around 2.2 billion of the trust preferred securities received from Citigroup. The move is part of an effort to claim back all of the $45 billion money provided to Citigroup from the bailout account. This is also in agreement with the statement issued by President Obama that he wanted "to recover every single dime the American people are owed."
Following the government rescues, Citi has been working hard, and was focusing on reducing its size by about one-third by unloading its noncore, less-liquid holdings such as private-equity stakes. The company aims to be a smaller, more internationally-focused banking institution.
In early October, Citi announced the closing of the sale of $1.6 billion in managed assets, part of its U.S. retail sales finance portfolios, to GE Capital. In mid-September, Citi signed a definitive agreement to sell off federal student loans and related assets of its unit The Student Loan Corp. (STU) to SLM Corp. (SLM) for $28 billion.
The company also sold recently its about $2-billion credit card portfolio of Canadian MasterCard business to Canadian Imperial Bank of Commerce (CM.TO) or CIBC.
Among peers, JPMorgan Chase & Co. (JPM) last Wednesday reported a 23% rise in third-quarter profit to $4.42 billion or $1.01 per share, reflecting a reduction in provision for credit losses. Meanwhile, revenues fell 11% to $23.82 billion.
Bank of America Corp. (BAC) is scheduled to report its third-quarter results on October 19. Analysts expect earnings of $0.16 per share on revenues of $27.15 billion.
Citi shares closed Friday's regular trading at $3.95, down $0.11 or 2.71%, on a volume of 1.06 billion shares, against a 3-month average volume of 449 million shares. In the past 52 weeks, shares have been trading between $3.11 and $5.07.
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