Summary
Citigroup Inc. filed its 2014 10-K on February 24, 2015, detailing a year marked by "steady progress on execution priorities despite a continued challenging operating environment." Key challenges highlighted include macroeconomic uncertainty, significant legal settlement costs (notably a $3.8 billion mortgage settlement), uneven global economic growth, and a low interest rate environment. Despite these headwinds, Citigroup made progress in efficiently allocating resources, disciplined expense management, and continuing the wind-down of Citi Holdings, reducing its assets by $19 billion. Financially, the company reported net income of $7.3 billion ($2.20 per diluted share) in 2014, a decrease from $13.7 billion ($4.35 per diluted share) in 2013. This decline was primarily attributed to higher legal and related expenses and repositioning costs. Excluding these items and other specific charges, adjusted net income was $11.5 billion. Revenues, net of interest expense, saw a slight increase of 1% to $76.9 billion. The company maintained strong regulatory capital ratios, with Basel III Common Equity Tier 1 Capital at 10.6% and Tier 1 Capital at 11.5% as of December 31, 2014.
Financial Highlights
37 data points| Revenue | $77.22B |
| Operating Expenses | $55.05B |
| Operating Income | $7.31B |
| Interest Expense | $13.69B |
| Net Income | $7.31B |
| EPS (Basic) | $2.21 |
| EPS (Diluted) | $2.20 |
| Shares Outstanding (Basic) | 3.03B |
| Shares Outstanding (Diluted) | 3.04B |
Key Highlights
- 1Net income for 2014 was $7.3 billion, a significant decrease from $13.7 billion in 2013, largely due to substantial legal settlement costs and higher operating expenses.
- 2Citigroup incurred a $3.8 billion charge related to a mortgage settlement announced in July 2014.
- 3Revenues, net of interest expense, increased slightly by 1% to $76.9 billion, driven by growth in Citi Holdings, partially offset by a decline in Citicorp.
- 4Operating expenses increased by 14% to $55.1 billion, primarily due to higher legal and related expenses and repositioning costs.
- 5Citigroup continued to wind down Citi Holdings, reducing its assets by $19 billion, or 16%, from year-end 2013.
- 6Basel III Common Equity Tier 1 Capital ratio remained strong at 10.6% as of December 31, 2014.
- 7Citigroup announced strategic actions to exit consumer businesses in 11 markets and certain businesses in the Institutional Clients Group (ICG) to focus on core franchises.