Daily News: July 15, 2013

Citigroup Q2 Net Income Up 42% Y/Y

Citigroup reported net income for Q2/13 of $4.2 billion, or $1.34 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 $18.4 billion for Q2/12.

Michael Corbat, chief executive officer of Citi, said, “Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged. We also continued to make progress in several critical areas. We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010. We again consumed a modest amount of DTA, bringing the total utilized to about $1.3 billion for the first half of the year. We increased our already strong capital levels, reaching an estimated Basel III Tier 1 Common ratio of 10%. Generating consistent and quality earnings is a key priority and this quarter met that goal.”

Citigroup’s allowance for loan losses was $21.6 billion at quarter end, or 3.4% of total loans, compared to $27.6 billion, or 4.3% of total loans, at the end of the prior year period. The loan loss reserve release of $784 million in the quarter was 22% lower than in the prior year period.

To read the full report click here.