Why Citigroup (NYSE:C) Missed on Earnings

Earnings for Citigroup (NYSE:C) in their latest quarter were extremely disappointing, missing analysts' expectations by twice what they were looking for.

Nomura analyst Glenn Schorr gave his take on Citigroup's performance, and said most of it can be attributed to slow trading and expenses at the giant bank.

Nomura had been looking for earnings of $0.07 a share, with consensus at $0.08 a share. Citigroup was only able to generate $0.04 a share for the quarter.

The expense portion cited by Schorr is what he believes when the hit related to the CVA took away the tax benefit.

Citing a 10.7 percent Tier 1 Common ratio and reserves standing at $40.7 billion, along with loan, deposit and investment banking growth internationally, Schorr sees Citigroup continuing to improve.

Normura maintains a "Buy" rating on Citigroup, which closed Tuesday at $4.80, losing $0.33, or 6.43 percent. Schorr has a price target on Citigroup of $5.50 a share.