Early Access

10-QPeriod: Q2 FY2015

CITIGROUP INC Quarterly Report for Q2 Ended Jun 30, 2015

Filed August 3, 2015For Securities:CC-PN

Summary

Citigroup Inc. (C) reported a strong second quarter of 2015, with net income of $4.8 billion, or $1.51 per diluted share, a significant improvement from the prior-year period's $181 million, or $0.03 per share. Excluding certain items like CVA/DVA and the prior-year mortgage settlement charge, adjusted net income was $4.7 billion, or $1.45 per diluted share, up 18% year-over-year, driven by lower expenses, reduced credit losses, and a lower tax rate, partially offset by softer revenues. Citicorp, the company's core banking franchise, saw net income increase by 27% to $4.7 billion, driven by growth in the Institutional Clients Group (ICG) and improved performance in Global Consumer Banking (GCB) ex-U.S. The ongoing wind-down of Citi Holdings continued, with assets reduced by 22% year-over-year and the segment remaining profitable. The company also continued to strengthen its capital position, with Common Equity Tier 1 capital ratios increasing and operating expenses decreasing 30% year-over-year, aided by lower legal and repositioning expenses, and the positive impact of foreign exchange translation. Investors should note the continued focus on expense discipline and the ongoing wind-down of non-core assets as key drivers of performance.

Financial Highlights

37 data points
Beta

Revenue

$19.47B

Net Income

$4.85B

0.2% Net Margin

EPS (Diluted)

$1.51

Total Assets

$1.83T

Free Cash Flow

$15.52B

Financial Statements
Beta
Revenue$19.47B
Operating Expenses$10.93B
Operating Income$9.62B
Interest Expense$3.05B
Net Income$4.85B
EPS (Basic)$1.52
EPS (Diluted)$1.51
Shares Outstanding (Basic)3.02B
Shares Outstanding (Diluted)3.02B

Key Highlights

  • 1Net income of $4.8 billion, or $1.51 per diluted share, a substantial increase from $0.03 per share in Q2 2014.
  • 2Adjusted net income (excluding CVA/DVA and prior-year mortgage settlement charge) of $4.7 billion, up 18% year-over-year.
  • 3Citicorp net income increased 27% to $4.7 billion, driven by higher ICG and GCB (ex-U.S.) revenues.
  • 4Citi Holdings remained profitable while continuing its wind-down, reducing assets by 22% year-over-year.
  • 5Total operating expenses decreased 30% to $10.9 billion, largely due to lower legal and repositioning costs, and foreign exchange translation benefits.
  • 6Common Equity Tier 1 capital ratio (fully implemented basis) increased to 11.4% from 10.6% in the prior year.
  • 7Capital ratios remain well above regulatory minimums and the company maintained its 'well capitalized' status.

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