For 2011 Q1, Citigroup had a total revenue of $19.7 billion. This is a 22% decrease from the Q1 of 2010 for Citigroup, however it is an 8% increase from their Q4 report. This enormous downgrade from the 1Q10 to the 1Q11 report was partly due to Citigroup downsizing it’s Citi Holdings, where it housed it’s least riskier assets during the recession, and many investors still consider this a liability.
Citigroup’s future is promising one, with the prospect of a stock split, and re-implementation of dividend. The dividend will be a small at one cent per share and paid out quarterly, but there is much more to it than dividend earnings. The dividend, whilst small compared to JPM’s and BOA’s, is more symbolic, and is a sure sign of future profitability for Citigroup.
Citigroup has also stated that they expect this to increase within the next year. Citi also plans for a 10:1 reverse stock split, effective on May 6, 2011. This will reduce the number of outstanding shares of the company, from 29 billion to just 2.9 billion. The goal of this split is to not just reduce the number of outstanding shares, but also bump the share price above the magic 5 dollar mark.
The stock’s P/E currently is 12.49, considerably more than JPM’s which comes in at 9.3. Though, with the split on the horizon, we can expect the P/E to change.
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