Summary
Citigroup Inc. (C) reported a net income of $3.2 billion, or $1.00 per diluted share, for the third quarter of 2013, a significant improvement from the $468 million net income, or $0.15 per diluted share, reported in the third quarter of 2012. This growth was driven by lower operating expenses, reduced credit costs, and a substantial reduction in the loss from Citi Holdings, which narrowed to $104 million from $3.6 billion in the prior year period. While reported revenues saw a 30% increase due to the absence of a large loss related to the Morgan Stanley Smith Barney (MSSB) joint venture in the prior year, adjusted revenues excluding certain items were down 5%. This revenue decline was primarily attributed to challenging market conditions in Securities and Banking and ongoing spread compression impacting Global Consumer Banking and Transaction Services. The company's capital position remained strong, with its estimated Tier 1 Common ratio under Basel III improving to 10.5%. Despite revenue headwinds and continued legal expense accruals, particularly within Citi Holdings, Citigroup demonstrated progress in managing expenses and credit quality.
Financial Highlights
37 data points| Revenue | $17.90B |
| Operating Expenses | $11.68B |
| Operating Income | $11.13B |
| Interest Expense | $3.95B |
| Net Income | $3.23B |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 3.03B |
| Shares Outstanding (Diluted) | 3.04B |
Key Highlights
- 1Net income increased significantly to $3.2 billion ($1.00/share) from $468 million ($0.15/share) year-over-year.
- 2Operating expenses decreased by 4% to $11.7 billion, with Citicorp's expenses down 6% due to expense control initiatives.
- 3Provisions for credit losses declined by 25% year-over-year to $2.0 billion, and net credit losses decreased by 38% to $2.4 billion, reflecting improved credit performance.
- 4Citi Holdings reported a reduced net loss of $104 million compared to a $3.6 billion loss in the prior year quarter, continuing its wind-down process.
- 5Estimated Basel III Tier 1 Common ratio improved to 10.5% from 10.0% in the prior quarter, indicating strengthening capital position.
- 6Global Consumer Banking revenues declined 7% year-over-year, primarily due to lower mortgage origination revenues and spread compression, particularly in North America.
- 7Securities and Banking revenues decreased 2% year-over-year, impacted by lower fixed income market volumes and challenging investment banking conditions, though equity markets revenue increased significantly.