Summary
Citigroup Inc. reported a net income of $2.9 billion, or $0.95 per diluted share, for the first quarter of 2012, a slight decrease of 2% from the prior-year period. Excluding certain valuation adjustments and gains from minority investments, the adjusted net income rose to $3.4 billion, or $1.11 per diluted share, driven by higher revenues, lower credit costs, and a reduced effective tax rate. Total revenues, net of interest expense, were $19.4 billion, down 2% year-over-year, impacted by negative valuation adjustments on derivatives. However, underlying revenues, excluding these adjustments and minority investment gains, increased by 1% due to growth in Citicorp's core businesses—Global Consumer Banking and Institutional Clients Group—which more than offset declines in Citi Holdings. Operating expenses remained flat year-over-year, with investment spending offset by efficiency savings. Credit quality showed improvement, with total provisions for credit losses declining 5% and net credit losses falling 37% year-over-year. The company's capital position strengthened, with Tier 1 Common and Tier 1 Capital ratios increasing. Citi Holdings continued to divest non-core assets, with total assets declining 29% year-over-year. The company's strategic focus remains on its core Citicorp businesses, which are demonstrating solid revenue growth and improved profitability.
Financial Highlights
38 data points| Revenue | $19.12B |
| Operating Expenses | $12.18B |
| Operating Income | $2.94B |
| Interest Expense | $5.59B |
| Net Income | $2.93B |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 2.93B |
| Shares Outstanding (Diluted) | 3.01B |
Key Highlights
- 1Net income of $2.9 billion ($0.95 per diluted share), a 2% decrease from Q1 2011.
- 2Adjusted net income of $3.4 billion ($1.11 per diluted share) showed a year-over-year increase.
- 3Total revenues of $19.4 billion, down 2% year-over-year, impacted by derivatives valuation adjustments.
- 4Operating expenses remained flat year-over-year, benefiting from efficiency savings.
- 5Total provisions for credit losses decreased 5%, and net credit losses fell 37% year-over-year, indicating improved credit quality.
- 6Tier 1 Common ratio increased to 12.5% and Tier 1 Capital ratio to 14.26%, reflecting strengthened capital position.
- 7Citi Holdings assets declined 29% year-over-year as part of the ongoing divestiture strategy.