Key Stats for Citigroup Stock
- Price change for Citigroup stock in the last 6 months: -6%
- $C Stock Price as of Oct. 22: $122
- 52-Week High: $148
- $C Stock Price Target: $151
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What Happened?
China’s securities regulator approved Citi’s (C) plan to set up a fully owned securities unit in China, Reuters reported on Friday.
It lets the bank grow its presence in the world’s second-largest economy.
The unit is called Citigroup Securities China Company and will be based in Shanghai. It can offer onshore capital markets services to local and foreign clients.
These include underwriting, equities brokerage, trading onshore securities, research and investment advice.
Citi applied for this license in late 2021 and has been hiring for the business over the last couple of years.
A person familiar with the matter told Reuters the bank aims to roughly double its team to around 100 people by the end of this year.
CEO Jane Fraser said onshore capabilities will help Citi do more for clients.
That includes raising capital, reaching investors and trading locally, while linking them to global opportunities.
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What the Market Is Telling Us About Citigroup Stock
This is a long-awaited approval, not a surprise earnings event. The direct impact on Citigroup stock is likely small for now as the unit is just getting started.
On its Q3 call, Citi said Services revenue rose 15%, and equities revenue rose 14%, helped by growth in Asia, where the bank has been investing to gain share.
Banking revenue grew 6%. Citi also led the SK hynix IPO, the largest-ever IPO of an Asian-based issuer.
Citi earned $5.2 billion in Q3, or $2.85 per share. Revenue was $23.8 billion, up 8%, and return on tangible common equity was 11.5%.
The bank also returned over $4 billion to shareholders, including $3 billion in buybacks.
Management has targets too. Citi expects to beat its 10% to 11% return target this year and aims for 11% to 13% in the near term, and 14% to 15% over time.
However, Jane Fraser said China’s economy leans heavily on exports, and Citi is also pulling some investment spending forward, which adds costs.
For Citigroup stock, this approval is one more step in a bigger plan, and investors will likely watch how fast the China unit grows.
Citigroup stock still depends mostly on overall returns, capital, and expense control.
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So what is Citigroup stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
