Citigroup's (C) Pandit Radiates Confidence Ahead of Results
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Citigroup Inc. (NYSE: C) Chief Executive Officer Vikram Pandit sat down for an interview with FOX Business and stated that his firm is the only U.S. bank with a global footprint; it is also ready to take on the international giants.
Pandit was so sure of his company's turnaround, that he stated that the government sees Citigroup removing itself from federal control by the end of the year. The confidence from Pandit comes ahead of Citigroup's second-quarter earnings release on Friday.
Analysts are estimating that Citigroup will post 5 cents per share in earnings and revenue of $22.2 billion, which would be down roughly 90 percent from the same quarter last year.
Pandit said that despite the low estimates for EPS in the second quarter, "the core earnings power of the company is strong."
The government still controls 18 percent of Citigroup's shares, which has been cut in half from the 37 percent stake controlled by taxpayers dollars at the height of the economic meltdown, when the firm need a massive infusion of capital to avoid collapsing.
The taxpayers have actually seen a nice profit from the Citigoup bailout so far, as the government has already earned $9 billion on the rescue from stock returns, fees from debt guarantees, and interest.
Pandit admitted that the firm is still overexposed to U.S. consumer who is weighed down by debt, and said that the forthcoming earnings are a barometer of the nation’s overall economy.
“The overall US economic recovery will take time,” says Pandit. “Substantial turnaround in the overall economy won’t come around until 2012.”
Pandit is taking his confidence global, saying that his firm better positioned than rivals JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC) to expand worldwide.
"We are in over 140 countries, we are well positioned,” Pandit said. “No other US bank has our global footprint. We are the only US bank that can go up against other global banks in those markets."
Shares of Citigroup are down 10 cents to $4.11 in late market movement Thursday.
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Pandit was so sure of his company's turnaround, that he stated that the government sees Citigroup removing itself from federal control by the end of the year. The confidence from Pandit comes ahead of Citigroup's second-quarter earnings release on Friday.
Analysts are estimating that Citigroup will post 5 cents per share in earnings and revenue of $22.2 billion, which would be down roughly 90 percent from the same quarter last year.
Pandit said that despite the low estimates for EPS in the second quarter, "the core earnings power of the company is strong."
The government still controls 18 percent of Citigroup's shares, which has been cut in half from the 37 percent stake controlled by taxpayers dollars at the height of the economic meltdown, when the firm need a massive infusion of capital to avoid collapsing.
The taxpayers have actually seen a nice profit from the Citigoup bailout so far, as the government has already earned $9 billion on the rescue from stock returns, fees from debt guarantees, and interest.
Pandit admitted that the firm is still overexposed to U.S. consumer who is weighed down by debt, and said that the forthcoming earnings are a barometer of the nation’s overall economy.
“The overall US economic recovery will take time,” says Pandit. “Substantial turnaround in the overall economy won’t come around until 2012.”
Pandit is taking his confidence global, saying that his firm better positioned than rivals JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC) to expand worldwide.
"We are in over 140 countries, we are well positioned,” Pandit said. “No other US bank has our global footprint. We are the only US bank that can go up against other global banks in those markets."
Shares of Citigroup are down 10 cents to $4.11 in late market movement Thursday.
Market Moving News and Intelligence - Free Sign-Up
http://www.streetinsider.com/premium_content.php
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