Early Access

10-QPeriod: Q3 FY2010

CITIGROUP INC Quarterly Report for Q3 Ended Sep 30, 2010

Filed November 5, 2010For Securities:CC-PN

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 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.

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