Citigroup: Financial Winners & Losers
NEW YORK (
) --
Citigroup
(C) - Get Report
was among the top performers on the financial sector Thursday, with shares extending a six-session rally that has pushed the stock higher by almost 19%.
Citigroup's
advance came as CEO Vikram Pandit presented at an investor conference Thursday.
The Financial Times
reports that Pandit will raise the prospect of the bank earning as much as $20 billion from its core Citicorp business by the end of 2012.
|
The
FT
arrived at the $20 billion figure by taking its expectation that Pandit would say Citicorp could earn a yearly return of 1.25% or more on its assets, and factoring that projection in with the current asset total of $1.3 trillion for the unit and a previously disclosed estimate that Citicorp would be able to grow its assets by 5% per year.
Citigroup rallied earlier this week on positive comments from influential hedge fund manager Bruce Berkowitz and debt research firm
CreditSights
, as well as a strong reception for an offering of $2 billion worth of trust-preferred securities.
Citigroup shares were lately up 12 cents, or 3.2%, to $4.08.
Among other U.S. bank stocks,
(BAC) - Get Report
traded higher after CEO Brian Moynihan said on Wednesday that the bank is looking to sell off more of its "lazier" assets.
Instead, Bank of America will reverse its growth strategy by focusing instead on the most profitable members of its customer base. "That's the operating model: Serve consumers, companies, investors, user franchise, and get the most out of the middle," Moynihan told investors at a financial services industry conference sponsored by Citigroup.
On Wednesday,
said it will eliminate overdraft fees on purchases made with debit cards. Customers, however, will be denied from making purchases if they have insufficient funds in their accounts.
Bank of America shares were up 0.4% to $17.17.
Shares of
American International Group
(AIG) - Get Report
continued to trade higher, rising 2% to $36.95. On Wednesday, a
CNBC
commentator attributed the insurer's near 50% surge over the last five sessions to a
, as 91.5% of AIG stock available for shorting has been borrowed as of yesterday.
Among other winners of the financial sector Thursday,
Fannie Mae
(FNM)
gained 0.9% to $1.11,
Wells Fargo
(WFC) - Get Report
was up 0.3% to $29.67, and
Goldman Sachs
(GS) - Get Report
tacked on 0.1% to $172.11.
On the downside,
Freddie Mac
(FRE)
shares slipped 0.8% to $1.30,
Morgan Stanley
(MS) - Get Report
was down 0.5% to $29.82, and
JPMorgan Chase
(JPM) - Get Report
slipped 0.1% to $42.90.
-- Written by Robert Holmes in Boston
.
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