Financial Results

Citi Private Bank’s Revenues Fall Slightly

Wendy Connett Editor 19 October 2010


Citi Private Bank’s revenues in the third quarter were $497 million, down $15 million, or 3 per cent, from the previous quarter. Revenues year-to-date versus the same period in 2009 remained flat at $1.5 billion, the bank reported yesterday.

Parent Citigroup reported third quarter net income of $2.2 billion or $0.07 per diluted share, marking its third consecutive quarterly operating profit. Citigroup income from continuing operations, which excludes an $800 million pre-tax ($435 million after-tax) loss on the previously announced sale of The Student Loan Corporation, was $2.6 billion or $0.08 per diluted share in the third quarter of 2010. In the first nine months of 2010, Citigroup earned $9.3 billion of net income and $9.6 billion of income from continuing operations.

"Achieving our third straight quarter of positive operating earnings is continued evidence that we are successfully executing our strategy and we believe we have put in place all the elements for continued profitability. We remain completely focused on serving our clients with excellence and capturing the growth potential inherent in the core businesses within Citicorp, while reducing the size of Citi Holdings as quickly as economically practical," Vikram Pandit, chief executive of Citi, said in a statement.

Brokerage and asset management revenues were negative $8 million, compared to positive $141 million in the second quarter 2010. The decline was mainly due to mark-downs on private equity investments, the bank said.

The US government still owns 12 per cent of Citigroup.


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