From SmarTrend via Fox:
According to a report from the Financial Times, Citigroup (NYSE:C) CEO Vikram Pandit is expected to say today that the bank could earn as much as $20 billion from its Citicorp by 2012.
Citicorp, which includes the banks wholesale and retail banking operations, generated a net income of approximately $14.7 billion during FY 2009.
The company has 28.5 Billion shares outstanding as of the 10K filed 2-26. (that's a big file)
Here's the Financial Times:
Pandit sees revival of Citi's fortunes
Vikram Pandit, Citigroup's chief executive, will today raise the prospect of the US bank earning as much as $20bn from its core business within a few years, a big increase from current levels that would mark a sharp revival in Citi's fortunes.
Mr Pandit's move - to be made as he details Citi's strategy to investors - is a bold attempt to shift financial markets' attention away from Citi's huge losses and repeated government bail-outs during the crisis. But it will also raise the stakes over Mr Pandit's tenure at the helm of the financial group by linking his future to the success of the strategy and financial performance.
People close to the situation said Mr Pandit would not give a specific profit target for Citicorp, the wholesale and retail banking operations that will remain part of the company once it sheds some $500bn-plus in unwanted assets and businesses. However, the Citi chief is expected to walk investors through Citicorp's earnings potential as the company focuses on its unrivalled reach across the global economy.
Mr Pandit will estimate that Citicorp could earn a yearly return of 1.25 per cent or more on its assets. The unit had assets of more than $1,300bn at the end of 2009, but Citi executives estimate the assets will increase by about 5 per cent a year. On that basis, Citicorp could earn about $20bn by the end of 2012.
Citicorp, which includes the commercial, investment and retail banks and the cash management business, had net income of $14.7bn in 2009, although Citigroup recorded a loss of $8.7bn due to its struggling non-core businesses....MORE
