Compelo Banking is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

Citi Q1 Profit Surges

Citigroup has reported a net income of $4.4bn for the first quarter of 2010, compared with the net loss of $7.6bn in the fourth quarter of 2009, as the global economic recovery boosted the values of its battered assets and allowed it to set aside less funds to cover credit losses.

Excluding the $6.2bn after-tax loss of the TARP repayment and the exit of the loss-sharing agreement in the fourth quarter of 2009, net income increased $5.8bn.

Citigroup revenues were $25.4bn, up $7.5bn sequentially, excluding the impact of the TARP repayment and exit of the loss-sharing agreement in the fourth quarter of 2009.

Securities and banking revenues increased $8bn from $3.3bn in the fourth quarter of 2009. Excluding the impact of CVA from both periods, revenues increased $2.5bn, or 48%, sequentially to $7.7bn.

Citigroup expenses were $11.5bn, down $796m, or 6%, from the prior quarter. Net credit losses of $8.4bn were recorded in the first quarter down $1.6bn or 16%.

The Tier 1 capital and Tier 1 common ratios of 11.2% and 9.1%, respectively, increased from the pro forma ratios as of year end 2009, after adjusting for the adoption of SFAS 166/167, which had a negative impact of 140 and 138 basis points, respectively.

Vikram Pandit, CEO of Citigroup, said: “We are proud of our first quarter results but remain cautious about the environment, given the uncertain economic recovery and high unemployment in the US Realistically, we do not expect our performance to follow an invariable trend-line upward. Longer-term, however, the prospects for Citi are clear and bright.

“Our performance was aided by stability in the capital markets and improvement in the global business climate.”