NEW YORK - Shares of Bank of America rattled lower after Citigroup reported its disappointing financial results. Citigroup recorded $1.3 billion of profit or 4 cents a share. Though, the company did show improving loan quality and capital ratios.
The news sent larger rival Bank of America lower. The pair have often been grouped together during the financial crisis. This is because both banks received substantial bailout funds from the federal government. The difference is that Bank of America has 100% more shares than in 2007 while Citigroup has 500% more. Despite this shares of Citigroup have caught up and at one time surpassed BAC in terms of market capitalization.
Bank of America the largest bank in the U.S. will report on Friday. The current estimate is for BAC to earn $2.4 billion or 24 cents a share. BAC is up 23% since Q3 despite being down 11% in the days following their earnings release. Investors will be looking to see whether Citi's results will lend credence to the theory that BAC and Citi are in the financial camp of misery. Or will BAC separate itself from the troubled Citigroup. To see the full BAC report click here.
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