Citigroup: A Capital Return Story

Summary Points:

- Citigroup reported impressive Q1 2018 operating results, but the market was not impressed.

- The bank has several catalysts in place, but the opportunity that it will have to return capital to shareholders is on the top of the list.

- Citigroup is a long-term buy at today's price.

Citigroup ($C) reported better-than-expected Q1 2018 EPS ($1.68 vs. $1.61) on revenue that was in line with estimates ($18.8B). The market, however, was expecting more, as shown by the fact that the stock finished the trading day down by ~1.5%. On a YTD basis, C shares are underperforming the broader market by a wide margin.

In my opinion, the market is presenting long-term minded investors with an opportunity to build a position in a bank that has promising business prospects for many years to come. Plus, the bank has a 'story' to tell.