Credit: Shutterstock photoThe big banks start to report earnings this week, with J.P. Morgan (JPM), Citigroup (C), and Wells Fargo (WFC) kicking off earnings season. There may be some concern about loan growth slowing among the group, but Citigroup may be able to ride out its strong performance in fixed income and equity trading to get it through any rough patches.
In the fourth-quarter, Citigroup said fixed income markets revenue rose 36% to $3 billion, while equity markets revenue rose 15%.
In its most recent quarter, Citigroup disappointed Wall Street, earning $1.14 a share on $17.012 billion in revenue, compared to estimates of $1.12 a share and $17.3 billion in sales.
Investors will also be looking at areas like loan growth, mortgage origination, trading products and the bank's net interest margin all in light of the Federal Reserve's recent increases to the federal funds rate.
A compilation of analysts estimates from Nasdaq shows a mild bearish forecast for Citigroup over the next few days ahead of the results.
Citigroup is expected to earn $1.24 and generate $17.83 billion in revenue for the first quarter.
Investors should consider these three ETFs which have high exposure to Citigroup if they like what they see from the Michael Corbat-led company.
PowerShares KBW Bank Portfolio ETF
Ticker: KBWB
PowerShares KBW Bank Portfolio ETF, which has $787.9 million in assets under management, has 8.35% of its portfolio in Citigroup shares. It also charges investors a 0.35% expense fee for managing the assets.
iShares U.S. Financial Services ETF
Ticker: IYG
The iShares U.S. Financial Services ETF, which has $1.41 billion in assets under management, has 6.34% of its portfolio in Citigroup shares. It also charges investors a 0.43% expense fee for managing the assets.
Oppenheimer Financials Sector Revenue ETF
Ticker: RWW
The Oppenheimer Financials Sector Revenue ETF, which has $32.1 million in assets under management, has 5.84% of its portfolio in Citigroup shares. It also charges investors a 0.49% expense fee for managing the assets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
