The Zacks Analyst Blog Highlights: Citigroup, HSBC Holdings, J.P. Morgan Chase, Goldman Sachs Group and Wells Fargo

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Jun 16, 2011, 09:30 ET

CHICAGO, June 16, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Citigroup Inc. (NYSE: C), HSBC Holdings Plc. (NYSE: HBC), J.P. Morgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS) and Wells Fargo & Co. (NYSE: WFC).

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Here are highlights from Wednesday's Analyst Blog:

Citi to Buy Retail Assets in Russia

Citigroup Inc. (NYSE: C) is expanding its retail banking activities in Russia by acquiring a part of the Russian banking business of HSBC Holdings Plc. (NYSE: HBC). The sale, which is expected to be completed in the third quarter of 2011, involves assets worth about $10.7 million.

HSBC divestiture is part of its effort to concentrate on its commercial and wholesale banking operations. In this context, HSBC had announced the intention to close its retail and private-banking units in Russia in April.

The expansion is a strategic fit for Citi, which is aiming to grow its business in international markets. The company's core business unit, Citicorp, generated 62% of its revenues and 72% of its net income from its international operations in the first quarter of 2011.

Recently, Citi also announced definitive agreements with China's Orient Securities Company Ltd. to form a securities joint venture to operate in that domestic market. The joint venture, in which Citi will own a 33% stake and Orient will own the remainder, will carry out investment-banking business in the Chinese domestic market, including equity and debt underwriting as well as advisory services. With this, Citi joined other Wall Street biggies such as J.P. Morgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE: GS) to foray into the Chinese market with joint ventures.

We believe that such strategic expansions and partnerships will enhance Citi's global network going forward and boost its revenue base by leveraging faster-growing emerging economies, thereby increasing its market share internationally.

Citi currently retains its Zacks #3 Rank, which translates into a short-term Hold rating. Also, considering the fundamentals, we maintain a long-term Neutral recommendation on the stock.

WFC-Wachovia Integration On Track

Wells Fargo & Co. (NYSE: WFC) is right on track with its integration of Wachovia. In this regard, Wells Fargo has completed the conversion of Wachovia Community Banking Operations in 363 Stores in Florida. This included Wachovia banking locations across north and central Florida and the greater Tampa.

As a result of this conversion, over 4.6 million Florida customers would now be able to avail products and services from the 363 Wells Fargo stores and access over 500 ATMs across that part of the state.

The company will convert the Wachovia banking locations in the southern half of Florida to Wells Fargo stores in July. The conversion process will continue in other eastern states through 2011.

Last month, Wells Fargo announced that it will complete the transition of the remaining Wachovia signs and systems by mid-October 2011. Specifically, Wachovia stores at Virginia will be converted in August, those at Maryland, South Carolina, and Washington, D.C. in September and finally the ones at North Carolina will come under the Wells Fargo wing in October.

The conversion of 868 stores and 1,487 ATMs in the four states and the District of Columbia will complete the transition from Wachovia to Wells Fargo.

Wells Fargo purchased Wachovia in December 2008, in a $12.7 billion all-stock deal, after Wachovia suffered due to its exposure to bad mortgages right before the housing bubble burst.

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