Citigroup Well Positioned for Growth: Cassidy

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Oct. 15 (Bloomberg) -- RBC Capital Analyst and Managing Director Gerard Cassidy discusses Citigroup's earnings with Betty Liu on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Stay with me.

I want to bring in the managing director and analyst who covered citigroup for the markets, who is on the phone with us.

What do you make of these results?

At the very least you get a sense that michael corbat is delivering on those cost controls.

That is very true.

When you think about the game plan this management team has put into place from a year ago, it was to reduce the credit costs and to reduce operating expenses.

The capital markets, as it was pointed out, were week this corner.

They were week and that brought down total wreck -- right down total revenues for the company.

How do they participate in this revival we keep hearing about?

I think what we are going to see is they will have some success in these markets.

Commodity trading is the biggest number for all investment banks, including citigroup.

That was impacted by the season.

I want to ask about what areas of strength michael corbett can focus on.

Aside from highlighting the ability to control costs, investors need a reason to get on board here for city.

Organic growth will come in time.

I think the most important thing was to build up their capital ratios and get the credit quality under control.

What is important with the third-quarter results is that diesel are the results that will be used in the stress test in march.

We should see them increase their dividend in march.

Does that position and the emerging markets put them in a better standing?

Longer-term it does.

If you believe the emerging markets over the next five years will look faster -- will grow faster than western markets, then yes they are better positioned to capture more growth.

They have a call coming up at 11 a.m.. what are your big questions?

I think the one question is going to be continued about the credit quality.

You mentioned the city holdings.

This is the first quarter some sitting holdings.

This is trending very nicely.

The question will be when will say holdings turn a profit?

-- when will city holdings turn a profit?

Number two is what is the second phase of the strategy?

How does revenues start to grow over the next 12 to 18 months?

We will look for the reserve releases.

Do you anticipate this to go down?

I would say they have an enormous level of reserves remaining.

We expect this to be a steady flow of revenue over time.

They still have plenty to go before they exhaust all the releases.

Thank you for joining us.

On our earnings radar this morning, in yahoo!, mrs.

Marissa

This text has been automatically generated. It may not be 100% accurate.

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