Was Pandit's prediction rash?

Citigroup CEO Vikram Pandit (Vikram Pandit news) made headlines when he predicted the bank would be able to earn $20 billion a year by 2012--which strikes many as requiring a whole lot of earnings growth in a short amount of time. For one thing, the company is still saddled with Citi Holdings (Citigroup news), the so-called bad bank (bad bank news), which isn't going to revive itself anytime soon.

To offset that drag, the bank needs strong performances from its commercial banking (commercial banking news) and investment banking operations, at home and abroad. There is little room for disappointment if the bank wants to meet its target. The big wildcard here is the investment banking side, the riskier side. It offers an opportunity for above average gains but also greater risks.

Deal Journal reports that the bank has been slipping a bit in global stock underwriting, while gaining in mergers and acquisitions. The sequential trend quarterly has been negative, as it has yet to replicate a blow-out first quarter of 2009. So it will be hard to get to $20 billion. But if the economy takes off, who knows? 

For more:
- here's the item
- Pandit on the Citi revival. Video

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