Citigroup Uncertain Post-'Brexit'

Bank has yet to experience negative impact

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Aug 01, 2016
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On Monday, Citigroup Inc. (C, Financial) said in a quarterly filing it had not yet suffered a “significant negative impact” after Britain’s decision to leave the European Union in June. Citigroup said that while market activity increased in the U.K. following the decision, the bank expects the operating environment to continue to be a challenge.

In addition, the New York-based bank said, “The result of the referendum has raised numerous uncertainties, including as to when the U.K. may begin the official process of withdrawal and the commencement of negotiations with the EU regarding the terms of the withdrawal.”

Citigroup is a financial services holding company that provides financial products and services, including consumer banking, corporate and investment banking, securities brokerage and wealth management. The company has a market cap of $128.7 billion with an enterprise value of $218.13 billion. It has a P/E of 9.3 with a forward P/E of 9.6. Its P/B is 0.6 and its P/S is 1.7. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 5 of 10. As of June 30, the bank had $108.4 billion in U.K. asset exposure, per the filing.

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In 2008, Citigroup suffered huge losses during the global financial crisis but was able to recover due to the stimulus package offered by the U.S. government. Citigroup has more than 200 million customer accounts and operates in over 160 countries. It is currently the third largest bank in the U.S. by assets, behind Bank of America (BAC, Financial) and JPMorgan Chase and Co. (JPM, Financial).

Disclosure: I do not own stock in any companies mentioned.

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