In an effort to take advantage of the growing economy in Latin America, Citigroup Inc. (C) has strengthened the regional team with the appointment of Marcia Rothschild. Rothschild will head Latin America Securities and Fund Services Client and Sales Management, Global Transaction Services.
With over 18 years of experience, Rothschild has held senior positions in Brazil, Luxembourg and the United States. Her understanding of client needs across Latin America makes her fit for the job at Citi. Her appointment is expected to help Citi in accelerating its sales momentum in this large and growing region. She has last served as the head of securities services in Brazil at BNP Paribas.
Following economic development, Latin America is experiencing not only a growth of institutional investors but also attracting inbound investment, according to Citi. The company currently has a presence in 23 markets in Latin America, and over 70,000 employees.
Last month, Citi reported second quarter earnings per share of $1.09, exceeding the Zacks Consensus Estimate of 96 cents. Results also improved from the prior quarter’s earnings of 99 cents and the year-ago figure of 90 cents.
Better-than-expected results were driven by a fall in provisions for credit losses. While the top-line headwind at Citigroup continued with revenue dropping from the prior-year period, the figure managed to exceed the Zacks Consensus Estimate. Expenses also increased year over year.
Going forward, we believe that such strategic hires should help in augmenting its business and increase its earnings potentiality by leveraging on the fast growing economies. Its global footprint is encouraging. Citi has operations in over 160 countries and jurisdictions, and helps corporate clients and consumers with their local and global needs.
Yet, regulatory issues, tardy economic recovery in the U.S. and escalating expenses are somewhat limiting earnings growth at Citi. However, in the long term, we believe investments in core franchise will help garner a solid market share and support its earnings.It also has comparatively less exposure to mortgage-related problems than many of its peers.
Citi shares are maintaining a Zacks #3 Rank, which translates into a short-term Hold recommendation. Its closest peers, JPMorgan Chase & Company (JPM) and Wells Fargo & Company (WFC), also retain a Zacks #3 Rank.
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