Close on the heels of the encouraging 2010 profit reported by JPMorgan Chase, Citigroup has disclosed its own 2010 numbers. Its profits for the past year total $10.6 billion and are the company’s first since 2007.
Losses For Citigroup.
Citigroup was a bank hit particularly hard by the recession, and current chief executive Vikram S. Pandit has spent all of his time in the position struggling to save the bank through three government bailouts and massive cost reductions necessitating the release of over 100,000 jobs. As a result of his decisions, the bank is regaining traction.
Investors: Patience Required.
Of course, to prove financial health and restore dividends to its investors, Citigroup will have to pass the same Federal Reserve stress tests as its brother banks, and it’s expected that the tests won’t even be administered to the bank until late 2011 or even 2012. For Citibank investors, who haven’t received dividends in quite some time as the bank scrambled to contain its cash, it means an even longer wait.