What drove the decrease in net income compared to the previous year?

The decrease in net income was primarily driven by lower revenues, a higher cost of credit, and repositioning charges, partially offset by lower operating expenses and the benefit of foreign currency translation.

How did the company's capital ratios perform?

Citigroup demonstrated strong capital generation. The Common Equity Tier 1 Capital ratio (fully implemented basis) was 12.3% as of March 31, 2016, up from 11.1% in the prior year. The Tier 1 Capital ratio improved to 13.8% from 12.1%.

What was the impact of the energy sector on credit provisions?

The net loan loss reserve build in the first quarter of 2016 included approximately $260 million for energy and energy-related exposures, reflecting continued deterioration in that portfolio due to sustained low oil prices.

How is the wind-down of Citi Holdings progressing?

Citi Holdings assets continued to decline, down 44% year-over-year to $73 billion, representing approximately 4% of total GAAP assets. The company expects Citi Holdings to largely 'break even' during the remainder of 2016.

C/C-PN 10-Q Quarterly Report Q1 FY2016 — Revenue, Net Income, EPS

Summary

Citigroup Inc. reported a challenging first quarter of 2016, marked by market volatility that impacted its institutional and wealth management businesses. Net income for the quarter was $3.5 billion, or $1.10 per share, a decrease from $4.8 billion, or $1.51 per share, in the prior-year period, primarily due to lower revenues and a higher cost of credit. Revenues declined 11% year-over-year to $17.6 billion, impacted by both Citicorp (-9%) and Citi Holdings (-31%). Despite the difficult environment, Citigroup highlighted progress in key areas, including growth in its North America Global Consumer Banking segment, particularly in Citi-branded cards, and continued growth in treasury and trade solutions within the Institutional Clients Group. The company maintained a strong capital position, with its Common Equity Tier 1 Capital ratio at 12.3% (fully implemented basis) and managed to reduce overall expenses by 3% year-over-year, partly due to the ongoing wind-down of Citi Holdings and foreign currency translation effects, although higher repositioning costs in Citicorp partially offset these savings. The company returned approximately $1.5 billion to shareholders via share repurchases and dividends.

Financial Highlights

36 data points

Beta

Revenue

$17.55B

Net Income

$3.50B

0.2% Net Margin

EPS (Diluted)

$1.10

Total Assets

$1.80T

Free Cash Flow

-$1.24B

Financial Statements

Beta

Revenue	$17.55B
Operating Income	$3.50B
Interest Expense	$2.94B
Net Income	$3.50B
EPS (Basic)	$1.10
EPS (Diluted)	$1.10
Shares Outstanding (Basic)	2.94B
Shares Outstanding (Diluted)	2.94B

Key Highlights

1Net income of $3.5 billion ($1.10 per share) decreased 27% year-over-year due to lower revenues and higher credit costs.
2Total revenues of $17.6 billion decreased 11% year-over-year, driven by declines in both Citicorp (-9%) and Citi Holdings (-31%).
3Operating expenses decreased 3% year-over-year to $10.5 billion, aided by lower legal expenses and FX translation impacts, but offset by higher repositioning costs.
4Provisions for credit losses and benefits increased 7% to $2.0 billion, primarily due to a net loan loss reserve build, particularly related to energy sector exposures.
5Common Equity Tier 1 Capital ratio (fully implemented basis) stood at 12.3%, up from 11.1% in the prior year, indicating strong capital generation.
6Citibank’s Supplementary Leverage ratio was 7.4%, an improvement from 6.4% in the prior year.
7Citigroup returned approximately $1.5 billion of capital to shareholders through share repurchases and dividends.

CITIGROUP INC Quarterly Report for Q1 Ended Mar 31, 2016

Summary

Financial Highlights

Key Highlights

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