Financial Results

Net Income Surges At Citigroup

Harriet Davies Editor - Family Wealth Report 19 October 2011


Net income rose 74 per cent year-over-year at Citigroup to $3.8 billion, or $1.23 per diluted share. Net income was also up by 13 per cent on a consecutive basis.

Total revenues net of interest expense at Citigroup were $20.8 billion for the third quarter, roughly flat on a year-over-year basis. Third quarter revenues included $1.9 billion of credit valuation adjustment reflecting the widening of Citi's credit spreads during the third quarter, and excluding this effect revenues were down 8 per cent, the bank said.

Total operating expenses rose 8 per cent over the same timeframe, to $12.5 billion. Total provision for credit losses and for benefits and claims dropped by 43 per cent to $3.4 billion.

At Citi Holdings, the brokerage and asset management business recorded a loss of $90 million, which was an improvement on the third quarter 2010, for which the unit made a $159 million loss.

Meanwhile, total net revenue at regional consumer banking, which falls within Citicorp, rose 2 per cent year-over-year to $8.3 billion, on a worldwide basis. The North America regional consumer basis, which makes up the biggest chunk of this, recorded net revenue of $3.4 billion, which is down 9 per cent year-over-year.

On the firm’s strategy, Vikram Pandit, chief executive, said the group was moving retail partner cards and a vast majority of its assets from Citi Holdings to Citicorp by the end of this year.

"We have reduced the size of Citi Holdings to 15 per cent of our balance sheet and further improved our financial strength," added Pandit.

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