Tomahawk, WI 04/16/2014 (Basicsmedia) – Citigroup Inc (NYSE:C) is doing all the things necessary to get back on to a growth trajectory. Its 1Q2014 adjusted net income of $4.2 billion represents an increase of 4% over $4.0 billion in 1Q2013. Adjusted revenues fell by 2% to reach $20.1 billion.

Better To Report A Profit …

Analysts were expecting some really nasty figures from Citi in the wake of other recent troubles for the bank including its failure to pass the Dodd-Frank stress tests administered by the Federal Reserve last month and a fraud in its Mexican unit which has led to multiple criminal investigations though the bank expects no financial losses from the fraud.

But a profit is a profit and it puts Citi in the company of Wells Fargo as the two banks who have reported positive results. Citi reported a decline of 18% in its fixed-income trading business which was less sharp than the 26% drop reported by JPMorgan Chase & Co. (NYSE:JPM).

Certainly, Citi’s profit looks better in comparison to the $276 million 1Q2014 loss reported by Bank of America Corp (NYSE: BAC). Only the West Coast bank Wells Fargo & Co (NYSE:WFC) whose profits soared to $5.9 billion in 1Q2014 has reported even better results than Citi.

While the Wall St focused banks — Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM) and Bank of America — were buffeted by lower fixed-income trading incomes and other Wall St related activities, Wells Fargo benefited by being focused on community banking and mortgage lending and being less engaged in Wall St activities.

Stock Outlook

The Citi stock has underperformed compared to Bank of America which just reported a loss. While the Citi stock price has increased by barely 7.88%, Bank of America’s stock price is up by 34% in the last one year.

Citi shares have grown by 69% in price over the past five years while Bank of America’s stock price has nearly doubled and Wells Fargo’s stock priced has nearly tripled.

Considering that the Citi stock is rather cheap from a valuation standpoint with a forward earnings multiple of 8.57, the outlook over a five-year time horizon appears to be positive.

Since the Citigroup Inc (NYSE:C)’s stock has been one of the underperformers over the past five years compared to its banking peers, it’s likely to be an outperformer in the future.

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