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Bank of America's Deposits Shrink, Bucking Big Bank Growth Trend

Citigroup had a fourth-place U.S. deposit market share of 4.74% as of June 30, increasing from 4.43% in June 2012 and 3.86% in June 2008. The company's total U.S. deposits were $447.604 billion as of June 30, growing 13% from a year earlier, and 65% over the previous five years.

Citigroup had also been an active cost-cutter in the wake of the financial crisis. The company trimmed its U.S. branch count to 1,042 as of June 30 from 1,070 in Jun 2012 and 1,079 in June 2008.

The company will announce its third-quarter results on Oct. 15, with analysts expecting EPS of $1.06, declining from $1.34 in the second quarter, but matching the earnings in third quarter of 2012.

KBW analyst Christopher Mutascio is ahead of the consensus, estimating Citigroup will report third-quarter EPS of $1.16, but on Wednesday he lowered his EPS estimate from $1.21. The analyst wrote in a note that "we expect trading revenues to decline 21% from 2Q13 (versus a 14% decline previously)." Lower third-quarter trading revenue is another major theme for the big banks heading into third-quarter earnings season, as some investors played it safe while waiting for the Federal Open Market Committee to decide whether or not to reduce the Federal Reserve's bond purchases.

Shares of Citigroup closed at $48.40 Thursday and traded for 8.8 times the consensus 2014 EPS estimate of $5.51.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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