- First-quarter EPS of $1.23 beats the consensus estimate of $1.17.
- Earnings excluding DVA were $1.29 a share.
- Revenue of $20.5 billion beats estimate of $20.17 billion.
- Excluding DVA, first-quarter revenue was $20.8 billion.
- Recaptured $700 million in deferred tax assets.
Updated from 10.39 a.m. ET with market close information and commentary, as well as comments from Atlantic Equities analyst Richard Staite.
The bank reported first-quarter earnings of $3.81 billion, or $1.23 a share, compared to earnings of $1.2 billion, or 38 cents a share, in the fourth quarter, and $2.93 billion, or 95 cents a share, in the first quarter of 2012.The first-quarter results beat the consensus estimate of a profit of $1.17 a share, among analysts polled by Thomson Reuters. The fourth-quarter results included $1 billion in pretax expenses tied to the company's major expense reduction initiative announced in December. Citi's first-quarter revenue, excluding credit and debit valuation adjustments (CVA and DVA) and minority interests, totaled $20.81 billion, compared to $18.66 billion the previous quarter, and $20.22 billion a year earlier. CEO Michael Corbat said Citigroup "benefited from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment." Securities and Banking revenue within main subsidiary Citicorp totaled $6.978 billion, increasing from $4.362 billion in the fourth quarter, and $5.342 billion in the first quarter of 2012. Excluding CVA and DVA, Securities and Banking revenue totaled $7.288 billion in the first quarter, increasing from $4.872 billion in the fourth quarter, $6.718 billion in the first quarter of 2012. Investment banking revenue was up 6% sequentially and 22% year-over-year, to $1.063 billion in the first quarter. Equity trading revenue totaled $826 million in the first quarter, increasing 78% from the previous quarter, but declining 10% from a year earlier. Fixed income trading during the first quarter totaled $4.623 billion, increasing from $2.741 million in the fourth quarter, but declining from $4.781 billion in the first quarter of 2012. The first-quarter bottom line was boosted by the utilization of $700 million in deferred tax assets (DTA). The company's DTA arising from losses from the credit crisis and foreign tax credits disallowed from equity capital totaled $49.805 billion as of March 31. The potential release of the entire DTA could be a pivotal event for the company and investors, with some analysts foreseeing a huge capital return down the line.
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