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How Interest Rate Swings Threaten Citigroup’s Net Interest Income and Profitability

How Interest Rate Swings Threaten Citigroup’s Net Interest Income and Profitability

Citigroup Inc (C) has disclosed a new risk, in the Debt & Financing category.

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Changes in benchmark interest rates are likely to materially influence Citigroup Inc.’s net interest income because asset yields and funding costs may reprice at different speeds and magnitudes. Prolonged low or rapidly falling rates, yield curve flattening or inversion, and rate-driven shifts in depositor and borrower behavior could compress margins, pressure capital through securities revaluations, and adversely affect Citi’s overall results of operations.

The average C stock price target is $131.94, implying 13.74% upside potential.

To learn more about Citigroup Inc’s risk factors, click here.

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