Drip Portfolio Report
Next Up, Citicorp
by Dale Wettlaufer (TMFRalegh@aol.com)


Alexandria, VA (June 18, 1998) --We've got to do it. There's no getting around it. Citicorp (NYSE: CCI), one of the world's best financial franchises, has to be considered for the Drip Port, even though there's no getting around the uncertainties caused by the company's agreed-upon merger with insurance and brokerage giant, Travelers Group (NYSE: TRV). For DRIP investors, this company, or any constituent parts, will be part of the investment landscape for many years to come, so we might as well dive into this interesting problem.

First, the numbers on Citicorp, then we'll get into looking at the company next week. Again, if you like, compare the following numbers to the numbers of the other banks that we've looked at. Printing the numbers makes this easier. If you have questions on terms or definitions, please first consult the resource materials for financial stocks that we linked in the top right of this page.

Tomorrow is Touchstone Friday. See you Monday...

Financials in millions

Price/Valuation

Share Price.....$150 3/4
Market Cap.....$69,831.92
Price/Book.....3.25
Price/ Tangible Book.....3.29
BVPS.....$46.35
Price/Assets.....21.13%
Price/Net Loans.....38.21%
Price/Deposits.....32.52%
Price/Tangible Assets.....21.15%
Price/Revenues.....3.17

P/E.....17.10 Amortization-Adjusted P/E.....16.98
Discount/Premium to Group.....-10.0%
EPS.....$8.82
Cash EPS.....$8.88
Diluted Sharecount.....463.23
1998 EPS Estimate.....$9.33
1999 EPS Estimate.....$10.54
Multiple on 1998 Est......16.16
Multiple on 1999 Est......14.30
Amort-Adjusted Multiple on 1999.....14.22
Discount/Premium to Group.....-3.6%

Capital Productivity/Efficiency

Asset Turnover2.....7.10%
Asset Turnover.....7.10%
ROE2.....19.46%
ROE.....19.34%
Amortization Adjusted ROE.....19.71%
ROA.....1.32%
ROA2.....1.326%
Net margin2.....18.67%
Net Margin.....18.55%
Efficiency Ratio.....60.37%
Interest Income/AEA.....8.04%
Interest Expense/AEA.....4.35%
Net Interest Margin.....3.69%
Net Share Buybacks (Including preferred).....$1,948.0
Dividends on Common.....$984.0
Retention Rate.....76.07%
Payout Ratio on Amort. Adjusted Earnings.....23.93%
Internal Capital Generation Rate.....14.99%
Owners' Yield.....4.20%

Balance Sheet

Cash & Nonearning Assets.....$12,635.0
Cash & Nonearning Last Year.....$11,229.0
Long Term Debt.....$21,759.0
Shareholder's Equity.....$21,471.0
Last Year Equity.....$20,780.0
Tangible Equity.....$21,220.0
Last Year Tangible Equity.....$20,502.0
Tangible Assets.....$330,163.0
Last Year Tangible Assets.....$290,076.00
Total Assets.....$330,414.0
Last Year Assets.....$290,354.0
Total Liabilities.....$308,943.0
Goodwill.....$251.0
Last Year's Goodwill.....$278.0
Gross Loans.....$188,600.0
Loan Loss Reserves.....$5,828.00
Loan Loss Reserves %.....3.09%

Leverage

Equity/Tangible Assets.....6.50%
Average Equity/Average Assets.....6.81%
Average Equity/Average Assets (Tangible).....6.73%
Assets/Equity.....14.69
Avg. Assets/Avg. Equity (Tangible).....14.87
Loans to Deposits.....87.84%
LT Debt/Equity.....101.34%
Leveraged Capital Ratio.....6.80%
Tier 1 Capital Ratio.....8.26%
Total Risk Based Capital Ratio.....12.13%

Income Statement

Revenues.....$22,025.00
Interest Income (TTM).....$24,929.0
Interest Expense (TTM).....$13,492.0
Net Interest Income.....$11,437.0
Provision for Loan Losses.....$1,991.00
Noninterest Income (TTM).....$10,588.0
Noninterest Expense (TTM).....$13,323.00
Net Income for Common (TTM).....$4,084.92
Amortization Adjusted Earnings.....$4,111.92
Noninterest income/interest income.....42.5%
Noninterest income/revenues.....48.07%
Noninterest income/NII.....92.58%
Amort. Adjusted Net/Revs......18.67%
Amortization of Goodwill.....$27.00

Credit Quality

Nonperforming Loans
Nonperforming Assets.....$2,913.0
Loan Loss Provision/Net Interest Income.....17.41%
Loan Loss Provision/Gross Loans.....1.06%
Charge Offs.....$2,654.67
Recoveries.....$663.67
Net Charge Offs$1,991.00
Nonperforming Assets Ratio.....1.54%
Reserves/Nonperforming Loans.....200.07%
Months Charge-Offs in Reserves.....26.3
Loan Loss Provision/Net Charge Offs.....100.00%

Deposits

Deposits.....$214,719.0
Noninterest bearing deposits.....$26,340.0
Noninterest bearing deposits last year.....$25,045.0
Noninterest deposits/deposits.....12.27%
Deposits/Liabilities.....69.50%
Core Deposit Percentage

Risk-Based Capital Productivity

ROE2*Tier1.....16.08
Leverage*Turns*Net Margin2.....1.13

FoolWatch -- It's what's going on at the Fool today.


6/18 Close

Stock Close Change CPB $55 - 15/16 INTC $69 11/16 + 7/16 JNJ $74 7/8 + 5/8
Day Month Year History Drip 0.35% 0.70% 1.89% (13.23%) S&P 500 (0.07%) 1.43% 14.01% 16.30% Nasdaq (0.21%) (0.35%) 12.89% 11.22% Last Rec'd Total # Security In At Current 05/29/98 2.269 CPB $54.513 $54.938 05/01/98 9.380 INTC $80.487 $69.688 05/07/98 5.099 JNJ $69.154 $74.750 Last Rec'd Total# Security In At Value Change 05/29/98 2.269 CPB $123.69 $124.65 $0.96 05/01/98 9.380 INTC $754.94 $653.64 ($101.30) 05/07/98 5.099 JNJ $352.62 $381.15 $28.54 Base: $1600.00 Cash: $316.12** Total: $1475.57

The Drip Portfolio has been divided into 68.021 shares with an average purchase price of $23.522 per share.

The portfolio began with $500 on July 28, 1997, adds $100 on the 1st of every month, and the goal is to have $150,000 in stock by August of the year 2017.

**Transactions in progress: 5/22/98: Sent $30 to buy more JNJ.