This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Citigroup Posts Surprise Profit

Updated to include Pandit's statements, added information about the results.

NEW YORK ( TheStreet) -- Citigroup (C - Get Report) Monday reported a surprise profit for the first quarter driven by improving revenue, lower credit costs and tighter expense controls.

The company posted a profit of $4.4 billion, or 15 cents a share, on revenue of $25.4 billion, for the three months ended in March.

The company said these results exclude the impact of a $10.1 billion pre-tax loss from the TARP repayment and exit of the loss-sharing agreement with the U.S. government in the fourth quarter.

"Citi today is fundamentally a very different company from what it was only two years ago," said Vikram Pandit, the company's CEO, in a statement. "With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.

The average estimate of analysts polled by Thomson Reuters was for breakeven results in the March period on revenue of $20.8 billion. In the fourth quarter of 2009, Citigroup lost $7.8 billion, or 33 cents a share.

Citigroup said its provision for credit losses for the three months ended in March was $8.6 billion, a decline of $2.6 billion on a sequential basis, and its lowest provision since the first quarter of 2008. The company said its total allowance for loan losses stood at $48.7 billion at quarter's end.

Pandit said, however, that Citigroup remains "cautious" about the business environment, citing uncertainty about the U.S. economy's recovery and continued high unemployment levels, and seemed to want to tamp down near-term expectations somewhat.

"Realistically, we do not expect our performance to follow an invariable trend-line upward," Pandit said. "Longer-term, however, the prospects for Citi are clear and bright."

Revenue from the company's core Citicorp operations totaled $18.52 billion, up 35% on a sequential basis, while its "bad bank" Citi Holdings operations posted revenue of $6.55 billion, up 26% from its fourth-quarter total.

Through Friday's close at $4.56, Citigroup shares are up 38% year-to-date, although the stock did pull back late last week after breaking through $5 in intraday action on Thursday for the first time since mid-October.

-- Written by Michael Baron in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
C $53.28 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs