Citi Reports First Quarter Revenues of $24.8 Billion
Net Income of $1.6 Billion, Loss Per Share of $0.18
Positive EPS Excluding the $0.24 Impact of Resetting the Conversion Price of Certain Preferred Shares
Net Income Primarily Driven by Improved Performance in Institutional Clients Group and Continued Expense Reductions
New York, NY – Citigroup Inc. today reported net income for the first quarter of 2009 of $1.6 billion and a loss per share of $0.18, based on 5,385 million shares outstanding. Revenues of $24.8 billion were driven by strong results in the Institutional Clients Group, partially offset by net write-downs. Results also include $7.3 billion in net credit losses and a $2.7 billion net loan loss reserve build.
The $0.18 loss per share reflected the reset in January 2009 of the conversion price of the $12.5 billion convertible preferred stock issued in a private offering in January 2008. This did not have an impact on net income but resulted in a reduction to income available to common shareholders of $1.3 billion or $0.24 per share. Without this reduction, earnings per share were positive. The loss per share also reflected preferred stock dividends, which did not impact net income but reduced income available to common shareholders by $1.3 billion.
Key Items
* Total revenues of $24.8 billion were up 99% compared to the first quarter of 2008, with sequential improvement across all regions.
* Net interest margin of 3.30% increased 50 and 8 basis points versus the first and fourth quarter 2008, respectively.
* Operating expenses were down $3.7 billion, or 23%, since the first quarter 2008.
* Headcount reduced by approximately 13,000 since the fourth quarter 2008 to 309,000 and approximately 65,000 since peak levels.
* Tier 1 capital ratio was approximately 11.8% versus 7.7% in the first quarter 2008.
* Deposit base remained relatively stable at $763 billion compared to the fourth quarter 2008, despite the challenging environment. Deposits declined 8% since the first quarter 2008, due to the sale of the German retail banking operations and the impact of foreign exchange. U.S. deposits increased $8 billion sequentially and $28 billion year-over-year.
* Closed sale of remaining Redecard position for an after-tax gain of $704 million.
Management Comment
“Our results this quarter reflect the strength of Citi’s franchise and we are pleased with our performance. With revenues of nearly $25 billion and net income of $1.6 billion, we had our best overall quarter since the second quarter of 2007,” said Vikram Pandit, Chief Executive Officer of Citi.
Source: Company Release.
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