Revenue of $20.1B declined 2% from a year earlier, when excluding CVA/DVA adjustments. Net income of $3.9B gained 4%. Operating expenses of $12.1B fell 1% (they included legal costs of $945M vs. $710M a year ago). Loan loss allowance of $18.9B, or 2.87% of total loans vs. $23.7B, or 3.7% of total loans a year ago.
Book value per share of $66.25 up 6% from a year ago. TBVPS of $56.40 up 8%. Basel III Tier 1 Common Ratio of 10.4% up from 9.3% a year ago. CEO Corbat: "Very cognizant of our shareholders desire to see a sustainable return of capital, we are engaged with the Fed to better understand their expectations regarding the CCAR process."
Citicorp revenue fell 5% Y/Y when excluding CVA/DVA adjustments, and net income fell 8%. As expected, it was another rough quarter for fixed income, with revenue of $3.85B off 18% Y/Y.
Citi Holdings net loss of $284M compared to loss of $804M a year ago as improving housing conditions pushed net credit losses down by 44%. Allowance for credit losses of $6.1B, or 6.76% of loans compares to $9.4B or 8.73% of loans a year ago. Assets of $114B fell 23% Y/Y and now represent just 6% of total Citigroup assets.
CC at 11 ET
C +3.6% premarket