r Citi. "Until we see the details, it's hard to know. Philosophically, I think it ought to be viewed positively," said Anthony Muh, head of Asia-Pacific for AT Asset Management in Hong Kong, which manages about US$1 billion in Asian equities, but does not hold any Citi shares.
Investors have in recent weeks grown increasingly hopeful about the U.S. financial sector moving closer to the end of its difficulties after being slammed over the past year by a meltdown in the U.S. subprime mortgage market and ensuing turmoil in global financial markets.
Citi's shares have risen 30 percent since mid-March, and closed on Thursday in New York at US$24.30.
But concerns still remain about Citi. Its shares still trade at about their book value, while healthier banks' shares typically trade well above their book value.
Citi's "Tier 1" capital ratio -- a measure of the bank's capital strength -- is above 8.6 percent, based on March balance sheet figures and recent capital raising efforts.
That's above the bank's internal targets, but the fact that Citi continues to raise equity, having issued perpetual preferred securities this week, makes some analysts wonder whether future writedowns will continue to be large.
Citi's balance sheet currently weighs in at more than US$2.2 trillion. Pandit has already been working at slimming down the bank's assets, having agreed to sell Citi's stake in CitiStreet benefits servicing venture, commercial leasing business CitiCapital and the Diners Club charge card business.
Citi has also sold about US$12 billion of loans linked to buyouts.
Another highlight of the meeting will be plans to slash as much as US$15 billion of operating expenses. Last year, Citi's costs totaled more than US$61 billion.
The bank has announced 13,200 job cuts in 2008, though analysts say tens of thousands of further cuts may be needed. The bank ended March with 369,000 employees.
