Summary
Citigroup Inc. reported a net income of $1.593 billion for the first quarter of 2009, a significant turnaround from a net loss of $5.111 billion in the same period of the prior year. Total revenues, net of interest expense, more than doubled to $24.789 billion from $12.441 billion in Q1 2008, primarily driven by strong trading results in the Institutional Clients Group (ICG) and lower net write-downs. Operating expenses decreased by 23% year-over-year, reflecting re-engineering efforts and cost reductions. Despite the return to profitability, the company's financial health was still impacted by a challenging economic environment, evidenced by a 76% increase in provisions for credit losses and a 10% decline in Global Cards revenue. The company also saw a significant year-over-year improvement in its loss per share, moving from a loss of $0.18 in Q1 2008 to $0.18 in Q1 2009, though this was impacted by accounting adjustments related to convertible preferred stock. The company's capital ratios remained robust, with a Tier 1 Capital Ratio of 11.92% at March 31, 2009, bolstered by government programs and ongoing exchange offers aimed at improving its capital structure.
Financial Highlights
22 data points| Revenue | $24.52B |
| Operating Expenses | $11.69B |
| Operating Income | $1.71B |
| Interest Expense | $7.66B |
| Net Income | $1.59B |
| EPS (Basic) | $-1.80 |
| EPS (Diluted) | $-1.80 |
| Shares Outstanding (Basic) | 538.50M |
| Shares Outstanding (Diluted) | 595.33M |
Key Highlights
- 1Citigroup reported a net income of $1.593 billion in Q1 2009, a significant improvement from a net loss of $5.111 billion in Q1 2008.
- 2Total revenues increased by 99% to $24.789 billion, driven by strong performance in the Institutional Clients Group (ICG) and lower write-downs.
- 3Operating expenses decreased by 23% to $12.087 billion due to re-engineering efforts and cost controls, including a 16% reduction in headcount.
- 4Provisions for credit losses increased by 76% to $10.307 billion, reflecting the ongoing impact of the challenging economic environment on consumer and corporate borrowers.
- 5The company's Tier 1 Capital Ratio stood at 11.92%, and Total Capital Ratio at 15.61%, indicating strong regulatory capital levels.
- 6Citigroup continued its efforts to de-risk and strengthen its balance sheet, including an expansion of its exchange offer for preferred securities, aiming to convert $33 billion of preferred stock into common equity.
- 7The company is actively working with borrowers to avoid foreclosures, assisting approximately 80,000 borrowers and providing help to 1.3 million credit card members through various forbearance programs.