Banking News

Citigroup second quarter results due to loan repayments

Citigroup second quarter results due to loan repayments

(18 July 2012 – Global) Citigroup reported a US$2.9 billion (A$2.8 billion) profit in the April to June period, after lowering the amount it keeps aside for loan losses as more of its customers paid back loans on time. The income included a US$984 million decrease in the bank's loan loss reserves and an accounting gain of US$219 million because the value of its debt decreased.

Revenue was US$18.6 billion, down 10 percent from the year-ago quarter. Analysts expected US$18.8 billion.

Overall, Citigroup's net income declined 12 percent from the second quarter 2011 to US$2.9 billion. Income was hurt by a US$424 million loss the bank took from selling its 10 percent stake in Turkey's Akbank.

As more of its customers, both consumer and commercial, paid back loans on time, Citi kept aside less for future losses – US$27.6 billion at the end of the quarter, compared with US$34.4 billion in the prior year period.
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