Summary
Citigroup Inc. reported a net income of $101 million for the third quarter of 2009, or a loss of $0.27 per diluted share. This quarter was marked by significant events, including the successful completion of exchange offers where approximately $58 billion in preferred stock and trust preferred securities were exchanged for common stock, substantially increasing the company's Tier 1 Common and Tangible Common Equity ratios. Revenues increased by 25% year-over-year to $20.4 billion, primarily due to positive revenue marks in Citi Holdings and gains from debt extinguishment, although offset by credit valuation adjustments and the absence of Smith Barney revenues. Operating expenses decreased by 16% due to divestitures and expense control measures. The company continued its deleveraging strategy, reducing total assets and improving its liquidity position. However, consumer and corporate non-accrual loans increased, indicating ongoing credit quality challenges.
Financial Highlights
33 data points| Revenue | $20.39B |
| Operating Expenses | $11.82B |
| Operating Income | $6.65B |
| Interest Expense | $6.68B |
| Net Income | $101.00M |
| EPS (Basic) | $-2.70 |
| EPS (Diluted) | $-2.70 |
| Shares Outstanding (Basic) | 1.21B |
| Shares Outstanding (Diluted) | 1.22B |
Key Highlights
- 1Net income for Q3 2009 was $101 million, a significant improvement from the prior year's net loss of $2.8 billion, though diluted EPS was a loss of $0.27.
- 2Revenues increased 25% year-over-year to $20.4 billion, driven by gains in Citi Holdings and debt extinguishment, partially offset by credit valuation adjustments and divestitures.
- 3Operating expenses decreased 16% year-over-year to $11.8 billion due to divestitures (Smith Barney) and expense control initiatives.
- 4Citigroup completed extensive exchange offers, exchanging approximately $58 billion of preferred stock and trust preferred securities for common stock, significantly boosting capital ratios.
- 5Tier 1 Common ratio improved to 9.12% and Tangible Common Equity (TCE) reached $102 billion, reflecting the capital-strengthening transactions.
- 6Consumer loan delinquencies increased, with a 90+ days past due rate of 4.70%, up from 4.24% in the previous quarter, primarily in the U.S. mortgage portfolio.
- 7Corporate non-accrual loans increased to $14.8 billion, reflecting the Company's policy of proactively moving distressed loans to non-accrual status.