Citigroup Q2 Earnings Off 12% on Lower Revenues
Citigroup reported net income for the second-quarter 2012 of $2.9 billion, or $0.95 per diluted share, on revenues of $18.6 billion. For the same period in 2011, revenues and net income were $20.6 billion and $3.3 billion, respectively.
Analysts polled by Thomson Financial had expected EPS of $0.89 on revenue of $18.9 billion.
Citi said second-quarter results included a $219 million gain related to how certain debt is valued and a net loss of $424 million ($274 million after-tax) from the previously announced sale of a 10.1% stake in Akbank T.A.S., a Turkish bank.
Citigroup said its total allowance for loan losses was $27.6 billion at quarter end, or 4.3% of total loans, compared to $34.4 billion, or 5.4%, in the prior year period. The $984 million net release of loan loss reserves in the quarter was down 50% from the prior year period.
The bank noted that its corporate loans grew 22% to $243 billion in the second quarter versus the same period in 2011.
Vikram Pandit, Citi’s chief executive officer, said: “Our core businesses performed well in a difficult environment and are generating solid returns. We had strong growth in both loans and deposits, showed resilience in our markets-facing businesses, and saw record revenues in Transaction Services. We reduced Citi Holdings to approximately 10% of our balance sheet while our capital strength and liquidity continue to be among the best in the industry. We remain focused on execution, managing our expenses and our risk, and serving clients as only we can.”
To read Citigroup’s news release, click here.