Jim Cramer says he likes JP Morgan Chase (JPM) , but favors Citigroup (C) even more.

"The reason why I like Citi is because the book value is $64, [which means] they can buy stock and it is accretive up to $64," Cramer said recently in an exclusive conference call with members of his Action Alerts PLUS club for investors.

The stock-picker also said that Citi CEO Michael Corbat is doing an "incredible" turnaround at the bank, which Cramer said is overcapitalized and passed regulators' stress tests with "flying colors. Most importantly, if we get [banking] deregulation ... they are going to be in there buying every single day."

The Action Alerts PLUS charitable trust recently sold part of its Citigroup holdings at about $60 a share, but Cramer said he'd build the position back up if Citi sees a pullback.

As for JP Morgan Chase, Cramer called that stock "terrific," adding that the bank stands to do well if the Federal Reserve raises rates three times or more this year, as some expect.

"If we get three rate hikes -- bingo, [JPM] will make a ton of money," he said. "Four and they'll make $3 billion extra."

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