Citigroup Q1 EPS Beat Expectations
Citigroup reported net income for the first quarter 2013 of $3.8 billion, or $1.23 per diluted share, on revenues of $20.5 billion. This compared to net income of $2.9 billion, or $0.95 per diluted share, on revenues of $19.4 billion for the first quarter 2012. Analysts polled by Thomson Reuters had expected EPS of $1.18.
Citi said the increase was driven by revenue growth and lower net credit losses, partially offset by higher expenses, a lower loan loss reserve release and a higher effective tax rate.
Citi’s allowance for loan losses was $23.7 billion at quarter end, or 3.7% of total loans, compared to $29 billion, or 4.5% of total loans, at the end of the prior year period. The loan loss reserve release of $652 million in the quarter was down 44% from the prior year period. Reserve releases in Citicorp of $301 million compared to $589 million in the first quarter 2012, predominantly reflecting lower releases in North America GCB, largely related to Citi-branded cards.
Michael Corbat, chief executive officer of Citi, said, “Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging. During the quarter, we benefitted from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment. However, the environment remains challenging and we are sure to be tested as we go through the year.”
To read the full text of Citigroup news release, click here.