10-QPeriod: Q3 FY2010

CITIGROUP INC Quarterly Report for Q3 Ended Sep 30, 2010

Filed November 5, 2010For Securities:CC-PNC-PR

Summary

Citigroup Inc. reported a net income of $2.2 billion, or $0.07 per diluted share, for the third quarter of 2010. This includes a $435 million after-tax loss from the sale of The Student Loan Corporation, which is reflected in discontinued operations. Total revenues decreased by 10% to $20.7 billion compared to the prior year, primarily due to lower revenues in Citi Holdings and a decrease in Securities and Banking revenues, partially offset by a positive credit valuation adjustment (CVA). Citicorp, the core banking segment, generated a net income of $3.5 billion, driven by strong performance in Regional Consumer Banking (up 75% year-over-year) and Institutional Clients Group (up 31% year-over-year). Citi Holdings, however, reported a net loss of $1.1 billion, largely due to a decline in Local Consumer Lending revenues and lower net revenue marks in the Special Asset Pool. Net credit losses improved by 30% year-over-year, marking the fifth consecutive quarter of improvement, with consumer net credit losses down 29% on a comparable basis. The company's capital position strengthened, with the Tier 1 Common ratio increasing to 10.33% and the Tier 1 Capital ratio to 12.50%.

Financial Highlights

33 data points
Beta

Revenue

$20.74B

Net Income

$2.17B

10.5% Net Margin

EPS (Diluted)

$0.72

Total Assets

$1.98T

Free Cash Flow

-$17.60B

Financial Statements
Beta
Revenue$20.74B
Operating Expenses$11.52B
Operating Income$9.46B
Interest Expense$6.18B
Net Income$2.17B
EPS (Basic)$0.74
EPS (Diluted)$0.72
Shares Outstanding (Basic)2.89B
Shares Outstanding (Diluted)2.98B

Key Highlights

  • 1Net income of $2.2 billion ($0.07 per diluted share), impacted by a $435 million after-tax loss from discontinued operations (sale of The Student Loan Corporation).
  • 2Total revenues of $20.7 billion, down 10% year-over-year, primarily due to lower revenues in Citi Holdings.
  • 3Citicorp reported a net income of $3.5 billion, with strong growth in Regional Consumer Banking (up 75%) and Institutional Clients Group (up 31%).
  • 4Citi Holdings reported a net loss of $1.1 billion, impacted by lower Local Consumer Lending revenues and reduced Special Asset Pool marks.
  • 5Net credit losses improved 30% year-over-year, reaching $7.7 billion, with consumer net credit losses down 29%.
  • 6Tier 1 Common ratio increased to 10.33% and Tier 1 Capital ratio improved to 12.50%, reflecting a strengthening capital position.
  • 7Total deposits increased 4% sequentially to $850 billion, up 2% year-over-year.

Frequently Asked Questions

Citigroup reported a net income of $2.2 billion, or $0.07 per diluted share. While total revenues were down 10% year-over-year to $20.7 billion, this was largely due to declines in Citi Holdings. The core Citicorp segment performed well, and net credit losses continued to improve.

Citicorp, the core banking segment, showed strong performance with a net income of $3.5 billion, benefiting from growth in Regional Consumer Banking and Institutional Clients Group. Citi Holdings, considered non-core, reported a net loss of $1.1 billion, impacted by lower revenues in Local Consumer Lending and a decrease in Special Asset Pool marks.

Citigroup's capital position strengthened during the quarter. The Tier 1 Common ratio improved to 10.33% and the Tier 1 Capital ratio increased to 12.50%, indicating a 'well-capitalized' status according to regulatory definitions.

Citigroup is involved in various litigation and regulatory matters, including those related to the credit crisis and subprime mortgages. The company is cooperating with government agencies and is defending itself against numerous lawsuits. While the ultimate outcome is uncertain, management believes that the eventual resolution of these matters would not be likely to have a material adverse effect on the consolidated financial condition, though it could impact results in specific periods.