12:25 PM EDT, 10/14/2022 (MT Newswires) — CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
C is executing on the sale of non-U.S. consumer banking units, which should lead to a more capital efficient bank. With an expected ’23 global recession, we lower our target $7 to $50 using a forward P/E of 7.1x our 2023 earnings estimate, below historic averages. We raise our 2022 EPS estimate by $0.05 to $7.40 and keep 2023’s at $7.00 per share. C reported $1.63, an $0.18 consensus beat and realized +18% Y/Y growth in net interest income (NII), with higher volumes and widening spreads of 2.31% versus 2.24%. Non-NII businesses declined 12% Y/Y with Institutional Clients Group (ICG) -5% (51% of total net revenues), Personal Banking and Wealth Management (PBWM) +6% (33%), Legacy Franchises +66% (14%), and Corporate/Other (2%). In PBWM, branded cards revenue rose +10%, retail services +12%, and retail banking +2%, while U.S. Personal Banking showed private bank -10% Y/Y revenue growth, wealth at work +6%, and Citigold +2% growth. C added net $441m to the $16.3b allowance for credit losses at quarter end.