Citi Breaks Out Good Bank/Bad Bank Results

The company also has been retooling the top of its executive ranks.

Citi, along with Bank of America (BAC Quote), reports second quarter earnings on July 17. Citi said it plans to break out data from the three units in financial results going forward, even though they are not divided legally.

"The creation of Citicorp and Citi Holdings reflects our strategy to refocus the company on its greatest strength: our global institutional and consumer banking businesses, while exiting non-core businesses and reducing risk assets," CEO Vikram Pandit said. "Citicorp is an extraordinary franchise with the largest global presence of any financial services firm in the world. Our focus is to grow Citicorp while managing our long-term exit from the non-core businesses and assets held in Citi Holdings."

Citicorp includes the consumer banking franchise and its institutional clients group, consisting of securities and banking operations and transaction services. Citi Holdings includes its brokerage and asset management operations, its consumer finance operations and a special asset pool of illiquid securities.

At the end of the first quarter 2009, Citi had $235.8 billion of on-balance sheet assets covered by a loss-sharing agreement with the U.S. government, Citi said Friday. The company's local consumer lending businesses were approximately 75% of these assets, while the Special Asset Pool holds the remainder, consisting of mostly former securities and banking assets, it said.

Citi shares closed down 3.7% to $2.59 on Friday.