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Citi Down 4% On Top- And Bottom-Line Miss

Submitted by Tyler Durden on 01/17/2013 09:21 -0400

While Citi's stock is getting hammered in the pre-market for missing both top- and bottom-lines, three things stand out to us at first glance. First, legal costs were well above expectations; second, they reduced their exposure to GIIPS during Q4 - just when the rip-roaring rally in Europe really took off; and third, and more importantly, Citi did not take a huge loan loss reserve drawdown like every other bank.

*CITIGROUP 4Q REV. $18.66B, EST. $18.92B :C US
*CITIGROUP 4Q ADJ. EPS 69C WITH/WITHOUT ITEMS MISSES EST. 96C
*CITI 4Q GIIPS NET CURRENT FUNDED EXPOSURE $8.9B VS 3Q $9.5B
*CITIGROUP 4Q LOAN LOSS RESERVE RELEASE $86M VS $1.5B PRIOR YR

The question is, why would Citi not take advantage of the investing public's ignorance like every other bank and release more from loan-loss-reserves - have they maxed out their previous releases? or are they less exuberant at the housing un-recovery? (we note that 90-179-Day Delinquencies rose)

Citi Q4 by xxyyxxyy123123

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Thu, 01/17/2013 - 09:23 | 3161729 LongSoupLine

And the fucking Bernanke cock jammed ES doesn't give a fuck.

Thu, 01/17/2013 - 09:28 | 3161746 GetZeeGold

Ben Shalom doesn't sweat the little crap.

Thu, 01/17/2013 - 09:30 | 3161754 flacon

S&P futures are soaring.... disgusting!

Thu, 01/17/2013 - 09:33 | 3161756 GetZeeGold

It's the roaring 20's all over again.

Thu, 01/17/2013 - 09:38 | 3161774 DeadFred

Don't worry. There's an iron cap at 1495 that would be hard to break in good times much less a couple weeks from when the MSM starts taking debt ceiling again. Let them have their fun.

Thu, 01/17/2013 - 09:35 | 3161757 Dr. Engali

I feel wealthier already. I think I'll buy some iCrap.

http://www.youtube.com/watch?v=8AyVh1_vWYQ

Thu, 01/17/2013 - 09:24 | 3161733 fonzannoon

* Citigroup excited for February so they can get their portion of 85 bil in QE and not give a rats ass about anything else.

Thu, 01/17/2013 - 09:25 | 3161734 Cursive

If Shittybank didn't take a few cookies out of the loan reserve account to boost earnings, things must be really awful.

Thu, 01/17/2013 - 09:27 | 3161744 CPL

They are playing possum. No way they could have burned through nearly a trillion dollars in bail outs....then again, why should anyone be surprised anymore.

Thu, 01/17/2013 - 09:27 | 3161743 brewing

they should never have gotten rid of pandit...

Thu, 01/17/2013 - 09:29 | 3161747 CPL

Please...

Thu, 01/17/2013 - 09:33 | 3161758 brewing

/sarc

Thu, 01/17/2013 - 09:31 | 3161749 Sudden Debt

Everything is in the message...

just say: CITI IS ONLY DOWN 4%!!!! BUY BUY BUY!!!

and you have a totally different story.

Profits are for communists only! right?...

Thu, 01/17/2013 - 09:31 | 3161752 IamtheREALmario

OK, so they have a bunch of nonperforming assets on the books and all of the primary dealers are required to buy treasuries for a guaranteed, but ppor return ... and people have lost all trust in the markets ... and debit cards are probably cutting into credit card revenue.

Is Citi in with JPM and MS being forced to be the buyer of lass resort for all assets and non-asset assets sold in the US markets?

Thu, 01/17/2013 - 09:31 | 3161755 Dr. Engali

Clearly they need to run a Spiderman towel promotion.

Thu, 01/17/2013 - 09:34 | 3161763 lizzy36

TBTF4EVR

Four years after financial crisis and banks still having "kitchen sink" quarters.

BOOYAH!

Thu, 01/17/2013 - 09:38 | 3161771 Tsar Pointless

Take a look at the UC initial claims report just released for last week.

http://www.dol.gov/opa/media/press/eta/ui/eta20130077.htm

Over 220k first-time claims magically wiped away via "seasonal" adjustments.

Rally on, dudes and dudettes!

Thu, 01/17/2013 - 09:41 | 3161787 kito

the fed is like a 30 round magazine that citi can reload anytime ammo gets low........ its dangerous for TBTF to have 30 round magazines......why isnt congress calling for the end of high capacity fed reloads?!?!?!?!?!?!?!?!?!?!?!?!?....................................

Thu, 01/17/2013 - 09:45 | 3161812 Tsar Pointless

Oh, and Housing Starts awesomeness seasonally adjusted to four-year high.

http://www.census.gov/construction/nrc/pdf/newresconst.pdf

Shh! Don't tell anybody that, not seasonally adjusted, housing starts and permits were DOWN in December from November.

Thu, 01/17/2013 - 09:49 | 3161827 Racer

This is one huge FARCE of a 'market'

Thu, 01/17/2013 - 09:50 | 3161830 IamtheREALmario

It kind of surprises me that the banks have a large amount of loan loss reserves left. Obviously they accrue them during the year. The question is how much more or less than was accrued in any given year is used. Maybe Citi did not accrue a lot and JPM did.

Thu, 01/17/2013 - 09:52 | 3161838 thismarketisrigged

lol, even though financials usually lead the market, dont worry, even with 2 of the bigger banks coming out with negative reports, the market will soar today.

when will this farce end already? i hope the market crashes on all these wall street theives

Thu, 01/17/2013 - 09:52 | 3161841 Cult_of_Reason

What's up with the huge parabolic DAX spike?

Thu, 01/17/2013 - 10:00 | 3161880 ekm

Bullshit. 4% is nothing.

Other primary dealers will buy/sell to each other C stocks in DARK POOL until it regains all loss.

Thu, 01/17/2013 - 10:17 | 3161969 orangegeek

Earnings/Outlook season - ebay started the ball rolling last night.

Let's see what the Dow daily does today - should be hard down.

bullandbearmash.com/chart/dow-jones-daily-higher-volume/

Thu, 01/17/2013 - 11:17 | 3162235 Yen Cross

Philly Fed. Index comes in shitty and it's all about the Stiil bourne "shadow inventory" takeup. What a freaking joke.

I stopped fighting the game in December. Just trading "price action". with tight stops. You have to be responsible and cut your losses. I'll play the game until I get stopped out.

Citi Down 4% On Top- And Bottom-Line Miss

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