Citigroup shares rose after the financial giant reported a $4.43 billion first-quarter profit on Monday as trading revenue offset losses from bad loans. Chris Whalen, senior vice president and managing director at Institutional Risk Analytics, shared his insights on the earnings results.
“It's a good quarter and good revenue number—Citi has done more house-cleaning than the other large banks,” Whalen told CNBC.
“You’ve got to throw roses when it’s due and they’ve sold a lot of the business.”
However, Whalen said Citi still has losses to deal with and will eventually “see the noise.”
“But I think Citi, because they had the gun at their head early, has been forced to do more,” he explained.
“Frankly, JPMorgan is the one I’m looking at in terms of catching up on reserves—they take a different posture,” said Whalen.
- Watch Whalen's Previous Appearance on CNBC (Mar. 15, 2010)
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No immediate information was available for Whalen or his firm.