Mike Corbat scored himself a nice little raise. Read more »
As those of you who’ve been with Citigroup since at least 2007 know, analyst Mike Mayo has never really had any very nice things to say about the bank. If you haven’t committed all of his comments and research reports to memory, or had them printed and stored for posterity in leather-bound books, a brief history of Mayo’s relationship with the institution include:
- Pissing on Citi’s house before Meredith Whitney
- Repeated criticism of Citi’s accouting
- Telling people the bank can’t be trusted
- Claiming not even Jamie Dimon could save the place
- Talking public shit about its ATMs
- This topical and OH NO HE DI’INT-level burn: “Asking Vikram Pandit about the crisis in capitalism is like asking Alec Baldwin about airplane etiquette“
- Telling chairman Dick Parons to GTFO and fast
Sure, Mayo was pretty pleased when the board threw his arch-nemesis, Vikram Pandit, out in the middle of the night, and even said he was going to give the bank a chance to prove itself to him under the new leadership of CEO Mike Corbat. But nobody actually thought he’d start having good thing to say about the place, which is why the Mayo Jar is as shocked as you to be offering this: Read more »
Citi announced its quarter this morning and there are various ways to tell that it was good, of which “the stock was up” is probably the main one. A possibly less objective test is that, back in March, Mike Corbat told everyone how he would grade himself, if he was grading himself. As he put it today:
Last month, I presented three targets we aim to reach by the end of 2015. First is achieving an efficiency ratio in Citicorp in the mid 50% range. Second, we want to generate a return on Citigroup’s tangible common equity of over 10%. And third is reaching a return on Citigroup’s assets of between 90 and 110 basis points in a risk-balanced manner.
Today Citi announced $4.0 billion of net income (excluding CVA/DVA), or $1.29 per share, which I work out to around 82bps of ROA, 9.86% ROTCE, and a 55.6% Citicorp efficiency ratio.1 So … pretty good, all in all?
One oddity of Corbat’s three-part plan is that two of the parts sort of collapse into each other. Read more »
Mike Corbat, the new chief executive officer of Citigroup, said the company’s profit goal for 2015 is earn at least a 10 percent return on the company’s tangible common equity. The target was posted on the company’s website on Tuesday in slides Corbat planned to use a few minutes later in a speech at an investor conference. The slides also showed a goal of earning a return on assets of 0.9 percent to 1.1 percent. In 2012, the company earned 7.9 percent on tangible common equity and 0.91 percent on assets, after adjustments for items. [Reuters]