Citigroup net income rises 42 per cent in second-quarter

Citicorp and Citi Holdings register growth in revenues.

New Statesman
Citibank headquarters in Manhattan. Credit: Getty Images.

Financial services giant Citigroup has posted a net income of $4.18bn, or $1.34 per diluted share, for the second quarter of 2013, an increase of 42 per cent compared to $2.94bn, or $0.95 per diluted share, for the same period a year ago.

Group revenues grew by 11 per cent to $20.47bn (2012: $18.38bn), of which Citicorp contributed $19.38bn (2012: $17.44), while Citi Holdings contributed $1.09bn (2012: $938m).

The group’s global consumer banking (GCB) division revenues grew by 2 per cent to $9.7bn (2012: $9.5bn), while securities and banking division revenues rose 25 per cent from the same quarter of the previous year to $6.8bn.

However, revenues of transaction services division declined by 1 per cent to $2.73bn (2012: $2.76bn).

The group’s book value per share was $63.02 and tangible book value per share was $53.10 in the second quarter of 2013, a growth of 1 and 2 per cent respectively compared to same quarter of the previous year.

Michael Corbat, CEO of Citigroup, 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 deferred tax asset (DTA), bringing the total utilized to about $1.3bn 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 per cent. Generating consistent and quality earnings is a key priority and this quarter met that goal.”