"For the time being, they're still in investment mode," Staite said. "That's why investors remain slightly skeptical about whether Citigroup can be successful in those countries."
The release of loan-loss reserves accounted for $2.55 billion, or almost half, of JPMorgan's record first-quarter profit of $5.56 billion. Citigroup would have reported a loss for the three months ended March 31 if it hadn't drawn down $3.37 billion in reserves.
When banks beat profit estimates by continuing to release reserves, investors view the earnings as being of "poor quality" and focus on the banks' "underlying fundamentals," Miller said.