Monday, April 18, 2011

Citigroup (C) Q1 Earnings, Revenue Drop

While first-quarter revenue for Citigroup (NYSE:C) fell as expected, results were better-than-expected.

The giant bank reported first quarter EPS of $0.10 a share, 1 cent better than the consensus of $0.09. Net income was $3.0 billion, compared to $1.3 billion in the fourth quarter of 2010 and $4.4 billion in the first quarter last year.

CEO Vikram Pandit said, "After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline. Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets."

Revenue plunged to $19.7 billion, a 22 percent decline, far below consensus of $20.55 billion. From last year the drop was 11 percent. The decline was most the result of negative CVA and lower revenues in Fixed Income Markets and North America Regional Consumer Banking.

For the seventh consecutive quarter Citigroup experienced net credit losses, which fell to $6.3 billion. For the year net credit losses are down 25 percent so far.

Citigroup was trading at $4.47, gaining $0.04, or 1.02 percent.

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