Summary
Citigroup Inc. reported a net income of $3.0 billion, or $0.10 per diluted share, for the first quarter of 2011. This represents a significant improvement from the previous quarter but a decline compared to the first quarter of 2010, primarily due to a 22% decrease in revenues year-over-year. The revenue decline was largely attributed to lower net interest revenue, stemming from reduced loan balances, and a substantial 31% drop in non-interest revenue, heavily influenced by weaker Securities and Banking performance and specific charges related to asset reclassifications. Citicorp, the core banking franchise, saw its net income fall by 19% year-over-year, though international operations continued to contribute significantly (72% of net income). While Regional Consumer Banking revenues experienced a slight decline, Institutional Clients Group revenues dropped 18%, heavily impacted by a 25% decrease in Securities and Banking revenue, exacerbated by negative credit valuation adjustments. Citi Holdings, which houses non-core assets, reported a reduced net loss, but its revenues were halved year-over-year, largely due to charges associated with asset reclassifications within the Special Asset Pool. Despite the revenue challenges, Citigroup demonstrated strengthened capital ratios, with its Tier 1 Common ratio improving to 11.3% and Tier 1 Capital ratio at 13.3%. The company also saw a substantial decrease in provisions for credit losses, down 63% year-over-year, indicating improving credit quality across much of its portfolio. However, operating expenses increased by 7% year-over-year, driven by higher legal costs and investment spending.
Financial Highlights
34 data points| Revenue | $19.73B |
| Operating Expenses | $12.33B |
| Operating Income | $2.96B |
| Interest Expense | $6.05B |
| Net Income | $3.00B |
| EPS (Basic) | $1.02 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 2.90B |
| Shares Outstanding (Diluted) | 3.00B |
Key Highlights
- 1Net income for Q1 2011 was $3.0 billion, down from $4.4 billion in Q1 2010 but up from $1.0 billion in Q4 2010.
- 2Total revenues, net of interest expense, were $19.7 billion, a 22% decrease year-over-year.
- 3Citicorp's net income was $4.1 billion, a 19% decrease year-over-year, with international operations accounting for 72% of this income.
- 4Citi Holdings reported a net loss of $0.6 billion, an improvement from a $0.9 billion loss in Q1 2010.
- 5Provisions for credit losses decreased significantly by 63% year-over-year to $3.2 billion.
- 6Operating expenses increased by 7% year-over-year to $12.3 billion, driven by legal costs and investment spending.
- 7Tier 1 Common capital ratio improved to 11.3% and Tier 1 Capital ratio stood at 13.3%.