Boston, MA 06/19/2013 (wallstreetpr) – The share prices of Citigroup Inc. (NYSE:C) had surged by 1.32 percent to close at $50.01 per share for the end of last trading session on Tuesday. The shares of the company had been trading in the range of $49.49 to $50.25 per share during the day. The shares of Citigroup Inc. (NYSE:C) had recorded 52 week low price level at $24.91 per share and 52 week high price level at $53.56 per share.
Citigroup Inc. (NYSE:C) had for the past few years been facing with a novel problem of finding ways to use up its $55 billion of tax credits and deductions, known as deferred tax assets as of March, 2013. In line with this problem, the bank had been making many moves to increase the taxable income so as to reduce its deferred tax assets. When Citigroup Inc. (NYSE:C) uses up all of these $55 billion in deferred tax assets, then the bank would have freed nearly $40 billion in capital, which would further enable the company to return more capital to its shareholders through stock buyback programs.
Citigroup Inc. (NYSE:C) had in February 2013 agreed to buy a portfolio of $7 billion in credit card loans given to Best Buy Co Inc from Capital One Financial Corp with primary focus on increasing its taxes. Further the bank is also reclassifying its overseas profits as money that it would bring back to the United States so that it could increase the US taxes on these profits.
Such moves are primarily attributed to the intention of Citigroup Inc. (NYSE:C) to free up its capital to return profits to the shareholders, after reducing the deferred tax assets. The shares of Citigroup Inc. (NYSE:C) had witnessed the trade of 19.54 million shares on Tuesday, while the average trading volume for the bank is at 31.28 million shares per day.
