Citigroup (C) is a bank that I predicted to have the potential to keep growing significantly. Two main reasons that I really like Citigroup have been:
1) a low price/book ratio
2) a low level of operating expenses as a proportion of total revenue
I have also been a big fan of its competitor Bank of America (BAC) due to its healthy loan growth and relatively lower dependence on net interest income to sustain overall income growth.
So, how does Citigroup compare?
While the banking sector has been buoyant overall, banking stocks came under particular pressure this quarter given the uncertainty as to the trajectory of future interest rate rises, particularly taking into account recent weakness in the greenback.