Citi has built a significant amount of capital and now boasts a Basel III Tier I Common Capital of 9.3%, putting it ahead of JPMorgan Chase's (JPM) capital ratio of 8.9%. Management expects to finish the year with the capital ratio at 10% or more, giving it a buffer over the proposed regulatory minimum of 9.5% for too-big-to-fail banks.
These are all important elements to Citi's earnings recovery story, so it is natural that investors and analysts are welcoming the results.
But the key is for the bank to keep delivering on its promise.
"Citigroup's stock is still a show me stock, in our view," RBC Capital analyst Gerard Cassidy wrote
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