Citi delivers strong results
(21 April 2010 – USA) Citigroup has pleased investors by revealing a first quarter 2010 net income of US$4.4 billion (A$4.74 billion) and revenues of US$25.4 billion.
The bank said that its revenues grew US$7.5 billion and its net income increased US$5.8 billion, excluding the US$10.1 billion pre-tax loss from the TARP repayment and exit of the loss-sharing agreement with the U.S. government in the fourth quarter of 2009.
Provisions for credit losses and for benefits and claims declined US$2.4 billion sequentially to US$8.6 billion, the lowest level since the first quarter of 2008.
Expenses were down 6 percent sequentially to US$11.5 billion.
Vikram Pandit, Citigroup’s chief executive officer said that the bank is fundamentally a very different company from what it was only two years ago. With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.
The bank’s CEO also said while they were proud of their first quarter results they would remain cautious about the environment, given the uncertain economic recovery and high unemployment in the U.S.
Realistically, Citi does not expect its performance to follow an invariable trend-line upward. Longer-term, however, the prospects for Citi are clear and bright. And the first quarter of this year has given the bank the best glimpse yet of the potential of becoming 'America's global bank', Mr Pandit added.
The bank's performance was aided by stability in the capital markets and improvement in the global business climate, Mr Pandit noted.
Provisions for credit losses and for benefits and claims declined US$2.4 billion sequentially to US$8.6 billion, the lowest level since the first quarter of 2008.
Expenses were down 6 percent sequentially to US$11.5 billion.
Vikram Pandit, Citigroup’s chief executive officer said that the bank is fundamentally a very different company from what it was only two years ago. With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.
The bank’s CEO also said while they were proud of their first quarter results they would remain cautious about the environment, given the uncertain economic recovery and high unemployment in the U.S.
Realistically, Citi does not expect its performance to follow an invariable trend-line upward. Longer-term, however, the prospects for Citi are clear and bright. And the first quarter of this year has given the bank the best glimpse yet of the potential of becoming 'America's global bank', Mr Pandit added.
The bank's performance was aided by stability in the capital markets and improvement in the global business climate, Mr Pandit noted.
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