(15 October 2009 – USA) Citigroup has revealed its third quarter’s results, showing a large drop in net income from the previous quarter.Citigroup’s net income for the third quarter 2009 was just US$101 million, a large drop from the previous two quarters where the bank seemed to be gaining ground.
Citigroup’s net income for the first quarter and second quarter were US$1.6 billion and US$4.28 billion respectively and were viewed as huge improvements from the previous year when the group recorded huge losses during the height of the financial crisis.
Third quarter revenues were US$20.4 billion. Results included US$8.0 billion in net credit losses and an US$802 million net loan loss reserve build.
During the third quarter, Citigroup completed its previously announced exchange offers. This resulted in an US$851 million after-tax gain; but it also resulted in a US$3.1 billion reduction in income available to common shareholders. This has resulted in an incremental net US$0.18 loss per share.
The group’s Tier One ratio and Tier One Common ratio ended the quarter at 12.7 percent and 9.1 percent respectively and customer deposits grew US$28 billion during the quarter.
Vikram Pandit, chief executive officer, Citigroup, said that bank is focused on looking forward; Citigroup will continue to focus on sustainable profitability and growth, repaying TARP and helping support America’s economic recovery.