How did Citigroup's expenses trend in the first quarter of 2013?

Citigroup's operating expenses increased by 1% year-over-year to $12.4 billion. This increase was mainly attributed to higher legal and related expenses, particularly in Citi Holdings, and higher repositioning charges.

What is the outlook for net interest margin (NIM)?

Citigroup's NIM increased slightly year-over-year due to lower cost of deposits and reduced long-term debt. The company expects NIM to continue to face pressure from the low interest rate environment but anticipates maintaining its NIM above 2012 levels for the full year 2013, although with some quarterly fluctuations and a potential sequential decline in Q2 2013.

How is Citi Holdings performing?

Citi Holdings reported a net loss of $794 million for the quarter, which is an improvement from the $1.0 billion net loss in the prior year. This improvement was driven by higher revenues and lower credit costs, though offset by higher expenses, primarily due to legal and related costs.

C/C-PN 10-Q Quarterly Report Q1 FY2013 — Revenue, Net Income, EPS

Q: What was the primary driver of Citigroup's revenue growth in Q1 2013?

Citigroup's revenue growth was primarily driven by the strong performance in its Securities and Banking division, which saw revenues increase by 31% year-over-year. This was partially offset by spread compression in Global Consumer Banking and Transaction Services.

Summary

Citigroup Inc.'s first quarter 2013 results showed a significant increase in net income of 30% year-over-year, reaching $3.8 billion, or $1.23 per diluted share. This growth was primarily driven by improved performance in its core Citicorp businesses, particularly the Securities and Banking division, which saw revenues increase by 31% year-over-year. The company also benefited from an improved credit environment, leading to a 25% decline in net credit losses. Despite overall revenue growth of 6% to $20.5 billion, the company faced ongoing challenges including spread compression in its Global Consumer Banking and Transaction Services segments and elevated legal and related expenses, particularly within Citi Holdings. Excluding the impact of credit valuation adjustments (CVA/DVA) and a prior-year gain on minority investments, adjusted net income increased 16% to $4.0 billion, with adjusted EPS rising to $1.29. The company demonstrated improved capital ratios, with its Tier 1 Common ratio at 11.8% under current regulatory guidelines and an estimated 9.3% under Basel III. Citi Holdings, while still reporting a net loss of $794 million, showed a decrease in its loss compared to the prior year, reflecting progress in reducing its footprint and negative impact on overall results.

Financial Highlights

36 data points

Beta

Revenue

$20.25B

Net Income

$3.81B

0.2% Net Margin

EPS (Diluted)

$1.23

Total Assets

$1.88T

Free Cash Flow

$24.29B

Financial Statements

Beta

Revenue	$20.25B
Operating Expenses	$12.29B
Operating Income	$3.84B
Interest Expense	$4.33B
Net Income	$3.81B
EPS (Basic)	$1.23
EPS (Diluted)	$1.23
Shares Outstanding (Basic)	3.04B
Shares Outstanding (Diluted)	3.04B

Key Highlights

1Net income rose 30% year-over-year to $3.8 billion, or $1.23 per diluted share.
2Revenues, net of interest expense, increased 6% to $20.5 billion, driven by strong performance in Securities and Banking.
3Net credit losses decreased by 25% compared to the prior year, reflecting an improving credit environment.
4Operating expenses increased 1% to $12.4 billion, primarily due to higher legal and related expenses.
5Citicorp's net income increased 17% year-over-year to $4.6 billion.
6Citi Holdings reported a net loss of $794 million, a decrease from the $1.0 billion loss in the prior year.
7Tier 1 Common ratio was 11.8% under current regulatory guidelines and estimated at 9.3% under Basel III.

CITIGROUP INC Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

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