Jefferies analyst Ken Usdin said in a note to clients Thursday that he met with Citigroup Inc. C Chief Financial Officer Mark Mason and that the company remains in a strong position despite a more uncertain operating environment. Citi is sticking to its target for return on average tangible common shareholders’ equity (ROTCE) of 11% to 12%, he said. ROTCE is calculated by dividing net earnings applicable to common shareholders by average monthly tangible common shareholders’ equity. Citi continues to benefit from high capital levels, ample liquidity and “sticky” operational deposits, Usdin said. “While Citi is mindful of the more uncertain operating environment and current volatility, the bank’s overall strategic plan is intact, including its divestiture strategy, growth priorities, and cost reduction plans,” Usdin said. Citi stock is up 0.2% in premarket trades.
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