Citi Likely to Dodge 2Q Losses in Asia, Analysts Say

Citicorp may sidestep some of the Asian troubles that will dampen the second-quarter earnings of its rivals, analysts say.

The appraisal followed a session with Citicorp vice chairman William Rhodes, who indicated the company is benefiting from its quick regrouping after problems in the region flared last year.

With adequate reserves and capital, "Citicorp is operating from a position of strength in Asia," said Diana P. Yates, banking analyst at A.G. Edwards & Sons.

The company's consumer and corporate businesses will grow "as the flight to quality continues," Ms. Yates said. She also predicted purchases by Citicorp of Asian credit operations, branches, or loan portfolios as troubled owners look to raise capital.

However, the analysts' sentiments failed to bolster Citicorp shares, which fell $3.0625, to $150.9375, on Friday.

Standard & Poor's bank index rose 0.53%, and the Dow Jones industrial average was up 0.09%. The Nasdaq bank index gained 0.11%, and the S&P 500 added 0.35%.

Compass Bancshares and Summit Bancorp were up more than the pack for most of the day, but traders were reluctant to connect the action with merger possibilities. They said the activity-Compass' closing at $44.5625, up 93.75 cents; and Summit's gaining 81.25 cents, to $47.50-more probably reflected opportunistic buying of beaten down shares.

Mellon Bank Corp., the perennial merger nominee, fell $4.25, to $70.625, when no deal materialized after a run-up Thursday on renewed takeover speculation.

The Pittsburgh banking company was not helped by a downgrade, to "attractive" from "buy," from Joseph Duwan, analyst with Keefe, Bruyette & Woods. Mr. Duwan cited "excessive takeover speculation" for driving shares higher than the company's fundamentals warranted. u

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