Patient Strategy Sees Citi Returns Improving Through the Decade
The investor letter expects Citi’s return on tangible common equity to recover in 2026 and reach the mid-teens by decade’s end.
Key takeaways
- The strategy expects Citi’s return on tangible common equity to reach 11.5% in 2026.
- The letter projects the measure will rise to the mid-teens by the end of the decade.
Patient Opportunity Equity Strategy expects Citigroup’s return on tangible common equity to reach 11.5% in 2026, up from 4.8% in 2023. The figures were included in the strategy’s third-quarter investor letter.
The strategy said it expects the measure to rise to the mid-teens by the end of the decade. It said that growth should support annual stock gains in the mid-teens.
The letter described Citigroup’s valuation at 10 times 2027 earnings as undemanding. The strategy also said CEO Jane Fraser had executed a turnaround, but that work remained unfinished.
This article was produced with the help of AI technology. Source: Yahoo Finance
