CITIGROUP INC Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Citigroup Inc. reported solid results for the third quarter of 2015, demonstrating progress on its strategic priorities despite a challenging economic environment. The company achieved net income of $4.3 billion, or $1.35 per diluted share, a significant increase from $2.8 billion, or $0.88 per share, in the prior-year period. This improvement was primarily driven by substantially lower legal and repositioning expenses, coupled with reduced net credit losses and a lower effective tax rate. Citicorp, the core banking franchise, saw a substantial increase in net income, driven by expense reductions and a lower tax rate, although revenues saw a slight decline, particularly in Global Consumer Banking. Citi Holdings continued its wind-down, reducing assets by 20% year-over-year and remaining profitable, which aligns with management's execution priorities. Capital ratios remained strong, with Common Equity Tier 1 Capital improving and well above regulatory requirements, reflecting effective capital management and shareholder returns through share repurchases and dividends.

Key Highlights

• 1Net income increased by 51% year-over-year to $4.29 billion, or $1.35 per diluted share.
• 2Total revenues decreased by 5% year-over-year to $18.69 billion.
• 3Operating expenses decreased by 18% year-over-year, largely due to significantly lower legal and related expenses and repositioning costs.
• 4Net credit losses decreased by 21% year-over-year to $1.7 billion.
• 5Citicorp's net income increased by 62% year-over-year to $4.26 billion.
• 6Common Equity Tier 1 Capital ratio (Basel III fully implemented) was 11.7% as of September 30, 2015, up from 10.6% in the prior year.
• 7Citi Holdings continued its wind-down, with assets decreasing by 20% year-over-year and remaining profitable.

Frequently Asked Questions