01—Abstract
Summary
Summary of the 10-K filed February 24, 2012. Cited figures are marked; the original filing is the authoritative source.
Citigroup Inc. reported a net income of $11.1 billiona, or $3.63 per diluted share, for the fiscal year 2011, a slight increase from the $10.6 billion earned in 2010.
However, revenues declined 10% to $78.4 billionb, primarily due to lower revenues in Citi Holdings and Securities and Banking, which more than offset growth in Global Consumer Banking and Transaction Services. The company's results were impacted by a challenging operating environment, marked by macroeconomic concerns in the U.S. and Eurozone, and lower market activity, particularly in the fourth quarter. Expenses increased by 8% to $50.9 billion, driven by higher legal and related costs, repositioning charges, and investment spending across key businesses, although cost reductions were noted in Citi Holdings due to declining assets.
Credit costs continued to improve, with provisions for credit losses declining 51%c and net credit losses down 35%, reflecting better credit trends in both consumer and corporate portfolios. The company maintained strong capital positions with a Tier 1 Capital ratio of 13.6% and a Tier 1 Common ratio of 11.8% at year-end 2011.
02—Key points
Key Highlights
- Net income of $11.1 billion ($3.63 per diluted share) in 2011, up slightly from $10.6 billion in 2010.
- Total revenues decreased 10% to $78.4 billion, impacted by a challenging macroeconomic environment and lower market activity.
- Operating expenses increased 8% to $50.9 billion, driven by legal costs, repositioning charges, and investments in growth areas.
- Credit costs significantly improved, with provisions for credit losses down 51% and net credit losses down 35%.
- Tier 1 Capital ratio of 13.6% and Tier 1 Common ratio of 11.8% at year-end 2011, indicating strong capital resources.
- Citicorp segment (Global Consumer Banking and Institutional Clients Group) delivered net income of $14.5 billion, while Citi Holdings reported a net loss of $2.5 billion.
- Significant progress in reducing Citi Holdings assets, down 25% to $269 billion at year-end 2011, with further wind-down planned.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 24, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $77.33B$86.60B | −10.7% |
| Operating Expenses | $50.25B$47.38B | +6.1% |
| Operating Income | $11.00B$10.62B | +3.6% |
| Interest Expense | $24.21B$25.10B | −3.5% |
| Net Income | $11.07B$10.60B | +4.4% |
| EPS (Basic) | $3.73$3.65 | +2.2% |
| EPS (Diluted) | $3.63$3.54 | +2.5% |
| Shares Outstanding (Basic) | 2.91B2.88B | +1.1% |
| Shares Outstanding (Diluted) | 3.00B2.97B | +1.0% |
05—Questions
Frequently Asked Questions
What was Citigroup's net income and earnings per share for 2011?
Citigroup reported a net income of $11.1 billion, or $3.63 per diluted share, for the fiscal year 2011.
How did Citigroup's revenues perform in 2011 compared to 2010?
Citigroup's total revenues decreased by 10% to $78.4 billion in 2011 compared to $86.6 billion in 2010, primarily due to lower revenues in Citi Holdings and the Securities and Banking segment.
What was the main driver of the increase in operating expenses?
Operating expenses increased by 8% to $50.9 billion, primarily driven by higher legal and related costs (approximately $1.5 billion), higher repositioning charges, and increased investment spending across Global Consumer Banking, Securities and Banking, and Transaction Services businesses.
How did Citigroup's capital position fare at the end of 2011?
Citigroup maintained strong capital positions, with a Tier 1 Capital ratio of 13.6% and a Tier 1 Common ratio of 11.8% at December 31, 2011, indicating it was 'well capitalized' according to regulatory definitions.
06—Continue