Quarterly growth projections
Citigroup (C) has a strong history of beating analysts’ earnings estimates. The bank has beaten analysts’ estimates in the past eight quarters with an average surprise of 5.6%, which is impressive. In the coming quarters, we expect Citigroup to sustain the momentum and report double-digit growth in its EPS.
Analysts expect Citigroup to register growth of 10.3%, 15.4%, 14.0%, and 15.5% in its EPS in the first, second, third, and fourth quarter of 2019, respectively.
We expect the growth in loans and deposits to drive Citigroup’s net interest income and its EPS. Lower expenses and a decline in the outstanding share count are expected to support the bank’s earnings in the coming quarters.
Citigroup has managed to lower its expenses and drive its efficiency savings. Citigroup’s expenses fell from $42.2 billion in the fourth quarter of 2017 to the fourth quarter, which is impressive considering the bank’s growth investments. The LTM efficiency ratio improved to 57.4% during the last reported quarter from 58.3% in the same quarter the previous year.
In comparison, we expect Bank of America (BAC) to also sustain the momentum in its bottom line and report double-digit growth in its EPS. Higher net interest revenues, efficiency savings, and share buybacks are expected to drive Bank of America’s bottom-line growth. JPMorgan Chase (JPM) and Wells Fargo (WFC) will likely benefit from efficiency savings and share repurchases.