...Solid and Stable Liquidity and Capital Profiles: The strength of the liquidity and capital profiles underpins Citigroup Inc.'s (Citi) ratings. Fitch Ratings expects Citi will manage its capital and liquidity profiles relatively conservatively, and although capital distributions will likely increase over time, they will still be governed by regulatory stress testing and, as such, remain reasonable. Strategy Execution Still Underway: Fitch views Citi's post-financial crisis clean-up as a very successful execution of its strategy, including the wind-down or divestiture of a significant amount of non-core assets. However, more recently, some of its financial performance momentum appears to have stalled. Citi's financial targets, while revised upward, remain below those of many large U.S. banks, and the 2017 ROA target was identical to what was laid out in 2013. Nonetheless, Fitch notes improvements regarding the funding profile, efficiency ratio and earnings profile. Earnings Lag U.S. Industry:...
