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Citigroup's first-quarter net income declines by 2 per cent

Citicorp and Citi Holdings revenues decline.


The financial services provider Citigroup has reported a net income of $2.93bn, or $0.95 per diluted share, for the first quarter of 2012 – a decrease of 2 per cent compared to $3bn, or $0.99 per diluted share, for the same period last year.

The third-biggest US bank reported total revenues (net of interest expense) of $19.41bn, down from $19.73bn last year.

Citicorp revenues of $18bn in the first quarter of 2012 included a negative $1.4bn of credit valuation adjustments (CVA) and debt valuation adjustments (DVA). Net income decreased 3 per cent over the prior year to $4.3bn.

Excluding CVA/DVA, Citi Holdings revenues were $786m, 53 per cent lower than the first quarter 2011. Total Citi Holdings assets declined $86bn, or 29 per cent, from the first quarter 2011, to $209bn. Citi Holdings assets at the end of the first quarter represented approximately 11 per cent of total Citigroup assets.

Securities and banking revenues declined 12 per cent from the prior year period to $5.3bn, while equity markets revenues of $902m were 18 per cent below the prior year period.

Investment banking revenues grew 2 per cent to $865m, while lending revenues declined 78 per cent to $56m.

Private bank revenues increased 11 per cent to $570m, while transaction services revenues were $2.7bn, up 7 per cent. Corporate and other revenues increased $561m year on year to $500m.

Vikram Pandit, CEO of Citi, said: “While our businesses operated in an improved environment, we also saw the benefit of our investments. We generated revenue growth and had positive operating leverage across all three of Citi’s core businesses. Global consumer banking, our largest business, produced another quarter of good growth in revenues, net income and key drivers like loans and deposits. Transaction Services had record quarterly revenues as it captured increasing share in global trade finance, and securities and banking rebounded strongly with year-over-year revenue growth excluding the impact of CVA/DVA.”

Pandit added: “We continued to wind down our Citi Holdings legacy portfolio, which now stands at 11 per cent of our total assets, while further building capital. With a tier 1 common ratio of 12.4 per cent under Basel I and an estimated tier 1 common ratio of 7.2 per cent under Basel III, we continue to be one of the best-capitalised banks in the world.

“While the operating environment improved in the first quarter, there is still much macro uncertainty and we will continue to manage risk carefully. We will continue to leverage the depth and the scale of our global presence to serve our clients and grow our businesses,” concluded Pandit.

Photo: Getty Images
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When will the government take action to tackle the plight of circus animals?

Britain is lagging behind the rest of the world - and innocent animals are paying the price. 

It has been more than a year since the Prime Minister reiterated his commitment to passing legislation to impose a ban on the suffering of circus animals in England and Wales. How long does it take to get something done in Parliament?

I was an MP for more than two decades, so that’s a rhetorical question. I’m well aware that important issues like this one can drag on, but the continued lack of action to help stop the suffering of animals in circuses is indefensible.

Although the vast majority of the British public doesn’t want wild animals used in circuses (a public consultation on the issue found that more than 94 per cent of the public wanted to see a ban implemented and the Prime Minister promised to prohibit the practice by January 2015, no government bill on this issue was introduced during the last parliament.

A private member’s bill, introduced in 2013, was repeatedly blocked in the House of Commons by three MPs, so it needs a government bill to be laid if we are to have any hope of seeing this practice banned.

This colossal waste of time shames Britain, while all around the world, governments have been taking decisive action to stop the abuse of wild animals in circuses. Just last month, Catalonia’s Parliament overwhelmingly voted to ban it. While our own lawmakers dragged their feet, the Netherlands approved a ban that comes into effect later this year, as did Malta and Mexico. Ringling Bros. and Barnum & Bailey Circus, North America’s longest-running circus, has pledged to retire all the elephants it uses by 2018. Even in Iran, a country with precious few animal-welfare laws, 14 states have banned this archaic form of entertainment. Are we really lagging behind Iran?

The writing has long been on the wall. Only two English circuses are still clinging to this antiquated tradition of using wild animals, so implementing a ban would have very little bearing on businesses operating in England and Wales. But it would have a very positive impact on the animals still being exploited.

Every day that this legislation is delayed is another one of misery for the large wild animals, including tigers, being hauled around the country in circus wagons. Existing in cramped cages and denied everything that gives their lives meaning, animals become lethargic and depressed. Their spirits broken, many develop neurotic and abnormal behaviour, such as biting the bars of their cages and constantly pacing. It’s little wonder that such tormented creatures die far short of their natural life spans.

Watching a tiger jump through a fiery hoop may be entertaining to some, but we should all be aware of what it entails for the animal. UK laws require that animals be provided with a good quality of life, but the cruelty inherent in confining big, wild animals, who would roam miles in the wild, to small, cramped spaces and forcing them to engage in unnatural and confusing spectacles makes that impossible in circuses.

Those who agree with me can join PETA’s campaign to urge government to listen to the public and give such animals a chance to live as nature intended.


The Right Honourable Ann Widdecombe was an MP for 23 years and served as Shadow Home Secretary. She is a novelist, documentary maker and newspaper columnist.