Summary
Citigroup's 2009 Form 10-K reveals a company in transition, significantly reducing its net loss from $27.7 billion in 2008 to $1.6 billion in 2009. This improvement was driven by substantial gains from the sale of Smith Barney and favorable revenue marks, partially offset by increasing credit loss provisions and a significant loss related to the repayment of TARP funding and exit from the loss-sharing agreement. The company demonstrated strengthened capital ratios, with Tier 1 Common increasing to 9.6% and Tangible Common Equity to 10.9% by year-end 2009, largely due to capital raises and exchange offers. Citigroup also improved its liquidity position and continued to reduce its total assets, moving towards a simpler, more focused structure with Citicorp as the core franchise and Citi Holdings managing non-core assets. Despite the improved profitability and capital position, the company faces a challenging outlook for 2010 due to ongoing macroeconomic headwinds, elevated unemployment, and uncertainties surrounding government support programs. Investors should note the company's continued focus on cost management, risk mitigation, and strategic investments in its core businesses, particularly in growth regions like Asia and Latin America.
Financial Highlights
37 data points| Revenue | $80.28B |
| Operating Expenses | $47.82B |
| Operating Income | -$1.16B |
| Interest Expense | $27.90B |
| Net Income | -$1.61B |
| EPS (Basic) | $-7.99 |
| EPS (Diluted) | $-7.99 |
| Shares Outstanding (Basic) | 1.16B |
| Shares Outstanding (Diluted) | 1.21B |
Key Highlights
- 1Reduced net loss to $1.6 billion in 2009 from $27.7 billion in 2008, primarily due to the sale of Smith Barney and improved revenue marks.
- 2Significantly strengthened capital position with Tier 1 Common ratio increasing to 9.6% and Tangible Common Equity ratio to 10.9% by year-end 2009.
- 3Repaid $20 billion of TARP funding and exited its loss-sharing agreement with the U.S. government.
- 4Continued to de-risk and reduce total assets, with total assets decreasing by 4% to $1.86 trillion.
- 5Restructured into two primary operating segments: Citicorp (core businesses) and Citi Holdings (non-core businesses) to enhance focus and value realization.
- 6Operating expenses were reduced by 31% year-over-year due to divestitures and re-engineering efforts, leading to a headcount reduction of over 100,000 employees.
- 7Anticipates continued challenging macroeconomic conditions in 2010, with credit costs remaining a significant driver of results, particularly in North America.