Is Citigroup A 'Buy' Following The Fed's Stress Tests?

  • Citigroup remains the cheapest large U.S. bank by price-to-book, justified by its higher risk profile and below-average profitability. Despite strong share performance, Citigroup's dividend yield is now less attractive, making earnings growth the main upside driver. Restructuring has improved efficiency and profitability, but asset quality and exposure to riskier markets/products remain concerns.