“With a clearer picture of what remains in Citicorp and the earnings power of its trading division, we assume long-run trading revenue will run about 2.5% of trading assets,” said analyst Jaime Peters.
“This multibillion-dollar revenue line is one of the hardest areas for investors to predict, as it is incredibly lumpy. In making this assumption, we also assume the proposed Volcker Rule will not derail Citi’s trading revenue,” the Morningstar analyst wrote in a report. “We believe Citicorp can get back to its historical profit run rate by 2013.”
Financial Select Sector SPDR Fund
