Citi Breaks Out Good Bank/Bad Bank Results

Citigroup (C Quote) on Friday touted the health of what it considers its core businesses going forward, as it broke out historical financial data from its recently restructured business lines.

Citi earlier this year was split into a so-called good bank, which housed assets it planned to keep, and so-called bad bank, which included soured securities and other assets it planned to unload. At the end of March, Citicorp, the good bank, made a profit of $7.68 billion, while Citi Holdings, the bad bank, recorded a loss of $5.34 billion, according to Citi's financial data. The company broke out quarterly results for Citicorp and Citi Holdings from the first quarter of 2007 through the first quarter of 2009.

Citi on the whole had reported a profit of $1.59 billion for the first three months of the year.

At the end of March, the good bank had revenue of $20.56 billion, while its bad bank had a negative revenue of $3.45 billion.

For all of 2008, Citicorp made a profit of $6.16 billion, while Citi Holdings had a loss of $32.02 billion. Citi on the whole recorded a $27.68 billion loss for 2008.

Citi had announced its split -- which also included a third group designated corporate/other -- in January as a way to "reduce assets, optimize value, and simplify and streamline" the company. But regulators had pressured the financial institution to make changes, given that it had received $45 billion in capital injections from the U.S. government as it struggled to come up for air from billions in losses on illiquid securities and consumer loans.