Summary
Citigroup Inc. reported a net income of $2.9 billion ($0.95 per diluted share) for the second quarter of 2012, a decrease of 12% compared to the prior year. Excluding certain adjustments, earnings per share were $1.00, slightly down from $1.02 in Q2 2011, primarily due to lower revenues, although expenses and credit costs also declined year-over-year. Revenues, net of interest expense, were $18.6 billion, down 10% from the prior year, driven by a decrease in non-interest revenue primarily due to the absence of gains from securities sales in the prior year. Operating expenses decreased by 6% to $12.1 billion, benefiting from efficiency savings and lower compensation costs, though legal and repositioning charges remained elevated. Total provisions for credit losses and net credit losses both saw significant year-over-year declines, indicating continued credit quality improvement across consumer and corporate portfolios. The company's capital position strengthened, with Tier 1 Common and Tier 1 Capital ratios increasing compared to the prior year.
Financial Highlights
38 data points| Revenue | $18.39B |
| Operating Expenses | $11.99B |
| Operating Income | $5.86B |
| Interest Expense | $5.34B |
| Net Income | $2.95B |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 2.93B |
| Shares Outstanding (Diluted) | 3.02B |
Key Highlights
- 1Net income of $2.9 billion ($0.95 per diluted share) in Q2 2012.
- 2Revenues, net of interest expense, decreased 10% year-over-year to $18.6 billion.
- 3Operating expenses decreased 6% year-over-year to $12.1 billion.
- 4Provisions for credit losses decreased 17% year-over-year to $2.8 billion.
- 5Net credit losses decreased 31% year-over-year to $3.6 billion.
- 6Tier 1 Common ratio increased to 12.7% and Tier 1 Capital ratio to 14.5% compared to the prior year.
- 7Citi Holdings reported a net loss of $920 million, an increase from the prior year's loss of $661 million, driven by lower revenues and lower credit reserve releases.