Citigroup revenues of $20.5 billion in the second quarter 2013 increased 11% from the prior year period. Excluding CVA/DVA and the Akbank loss in the second quarter 2012, Citigroup revenues of $20.0 billion in the second quarter 2013 increased 8% from the prior year period, with increases in both Citicorp and Citi Holdings.
Citicorp revenues of $19.4 billion in the second quarter 2013 included positive $462 million of CVA/DVA reported within
Securities and Banking. Excluding CVA/DVA and the Akbank loss in the second quarter 2012, Citicorp revenues of $18.9 billion increased 7% from the prior year period.
Securities and Banking revenues increased 25% (or 21% excluding CVA/DVA) and
Global Consumer Banking (GCB) revenues increased 2%, partially offset by a 1% decline in
Transaction Services (CTS) revenues, all versus the prior year period.
Citi Holdings revenues of $1.1 billion in the second quarter 2013 included positive $15 million of CVA/DVA. Excluding CVA/DVA, Citi Holdings revenues increased 17% versus the prior year period, driven by higher revenues in
Local Consumer Lending and an improvement in
Special Asset Pool revenues, partially offset by a decline in
Brokerage and Asset Management revenues. Total Citi Holdings assets of $131 billion declined $60 billion, or 31%, from the second quarter 2012. Citi Holdings assets at the end of the second quarter 2013 represented approximately 7% of total Citigroup assets.
Citigroup’s net income rose to $4.2 billion in the second quarter 2013 from $2.9 billion in the prior year period. Excluding the impact of CVA/DVA and the Akbank loss in the second quarter of 2012, Citigroup net income increased 26% to $3.9 billion. The increase reflected revenue growth and lower net credit losses, partially offset by higher legal and related expenses, a lower loan loss reserve release and a higher effective tax rate. Operating expenses of $12.1 billion were 1% higher than the prior year period mainly reflecting an increase in legal and related costs. Citigroup’s cost of credit in the second quarter 2013 was $2.0 billion, a decrease of 25% over the prior year period, reflecting an $883 million improvement in net credit losses partially offset by a $225 million decline in net loan loss reserve releases. Citi’s effective tax rate in the second quarter 2013 was 34%, compared to 19% in the prior year period. The higher effective tax rate reflected higher earnings in North America, a higher effective tax rate on international operations due to the previously disclosed change in Citi’s assertion surrounding the permanent reinvestment of earnings in certain international entities, as well as the resolution of certain tax issues in the current quarter.
Citigroup’s allowance for loan losses was $21.6 billion at quarter end, or 3.4% of total loans, compared to $27.6 billion, or 4.3% of total loans, at the end of the prior year period. The loan loss reserve release of $784 million in the quarter was 22% lower than in the prior year period. Reserve releases in Citicorp of $311 million compared to $740 million in the second quarter 2012, predominantly reflecting lower releases in
North America GCB, largely related to cards, with a net build in international
GCB (
Asia,
Latin America and
EMEA), reflecting portfolio growth as well as builds for specific credits in the commercial market businesses. Citi Holdings recorded a net loan loss reserve release of $473 million in the second quarter 2013, compared to a net reserve release of $269 million in the prior year period. Citigroup asset quality improved in the second quarter 2013 as total non-accrual assets fell to $10.1 billion, a 12% reduction compared to the second quarter 2012. Corporate non-accrual loans decreased 17% from the second quarter 2012 to $2.1 billion, while consumer non-accrual loans decreased 9% to $7.6 billion. The decline in consumer non-accrual loans versus the prior year period occurred despite the third quarter 2012 OCC guidance regarding the treatment of mortgage loans where the borrower has gone through Chapter 7 bankruptcy, which added $1.5 billion to consumer non-accrual loans. Consumer loans that were 90+ days delinquent, excluding the
Special Asset Pool, declined 31% versus the prior year period to $5.9 billion, or 1.6% of consumer loans.
Citigroup’s capital levels and book value per share increased versus the prior year period. As of quarter end, book value per share was $63.02 and tangible book value per share was $53.10, 1% and 2% increases respectively, versus the prior year period. At quarter end, Citigroup’s Basel I Tier 1 Capital Ratio was 13.3% and its Basel I Tier 1 Common Ratio was 12.2%. Citigroup’s estimated Basel III Tier 1 Common Ratio was 10.0% at the end of the second quarter 2013. Citigroup’s estimated Basel III supplementary leverage ratio for the second quarter 2013 was 4.9%.
5 |
CITIGROUP |
| | | | | | | | | | |
($ millions, except per share amounts) | | 2Q'13 | | 1Q'13 | | 2Q'12 | | QoQ% | | YoY% |
| | | | | | | | | | |
Citicorp | | 19,387 | | | 19,326 | | | 17,449 | | | - | | 11% |
Citi Holdings | | 1,092 | | | 901 | | | 938 | | | 21% | | 16% |
Total Revenues | | $20,479 | | | $20,227 | | | $18,387 | | | 1% | | 11% |
Total Revenues (Ex-CVA/DVA & (Loss) | | | | | | | | | | |
on sale of Akbank) | | $20,002 | | | $20,546 | | | $18,592 | | | -3% | | 8% |
| | | | | | | | | | |
Expenses | | $12,140 | | | $12,267 | | | $11,994 | | | -1% | | 1% |
| | | | | | | | | | |
Net Credit Losses | | 2,608 | | | 2,878 | | | 3,491 | | | -9% | | -25% |
Loan Loss Reserve Build/(Release) (a) | | (784 | ) | | (650 | ) | | (1,009 | ) | | -21% | | 22% |
Provision for Benefits and Claims | | 200 | | | 231 | | | 214 | | | -13% | | -7% |
Total Cost of Credit | | $2,024 | | | $2,459 | | | $2,696 | | | -18% | | -25% |
| | | | | | | | | | |
Income (Loss) from Cont. Ops. Before Taxes | | $6,315 | | | $5,501 | | | $3,697 | | | 15% | | 71% |
Provision for Income Taxes | | 2,127 | | | 1,570 | | | 718 | | | 35% | | NM |
| | | | | | | | | | |
Income from Continuing Operations | | $4,188 | | | $3,931 | | | $2,979 | | | 7% | | 41% |
Net income (loss) from Disc. Ops. | | 30 | | | (33 | ) | | 7 | | | NM | | NM |
Non-Controlling Interest | | 36 | | | 90 | | | 40 | | | -60% | | -10% |
Citigroup Net Income | | $4,182 | | | $3,808 | | | $2,946 | | | 10% | | 42% |
| | | | | | | | | | |
Net Income (Ex-CVA/DVA & (Loss) on | | | | | | | | | | |
sale of Akbank) | | $3,889 | | | $4,006 | | | $3,080 | | | -3% | | 26% |
| | | | | | | | | | |
| | | | | | | | | | |
Tier 1 Common Ratio(b) | | 12.2 | % | | 11.8 | % | | 12.7 | % | | | | |
Tier 1 Capital Ratio(b) | | 13.3 | % | | 13.1 | % | | 14.5 | % | | | | |
Return on Common Equity | | 8.8 | % | | 8.2 | % | | 6.5 | % | | | | |
Book Value per Share | | $63.02 | | | $62.51 | | | $62.61 | | | 1% | | 1% |
Tangible Book Value per Share | | $53.10 | | | $52.35 | | | $51.81 | | | 1% | | 2% |
| | | | | | | | | | |
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. |
(a) Includes provision for unfunded lending commitments. | | | | | | | | |
(b) As of January 1, 2013, Tier 1 Capital and Tier 1 Common Ratios under Basel I reflect the final (revised) U.S. market risk capital rules (Basel II.5). |
|
|
CITICORP |
| | | | | | | | | | |
(in millions of dollars) | | 2Q'13 | | 1Q'13 | | 2Q'12 | | QoQ% | | YoY% |
| | | | | | | | | | |
Global Consumer Banking | | 9,711 | | | 9,749 | | | 9,507 | | | - | | 2% |
Securities and Banking | | 6,841 | | | 6,978 | | | 5,471 | | | -2% | | 25% |
Transaction Services | | 2,732 | | | 2,606 | | | 2,767 | | | 5% | | -1% |
Corporate/Other | | 103 | | | (7 | ) | | (296 | ) | | NM | | NM |
Total Revenues | | $19,387 | | | $19,326 | | | $17,449 | | | - | | 11% |
| | | | | | | | | | |
Total Revenues (Ex-CVA/DVA & (Loss) | | | | | | | | | | |
on sale of Akbank) | | $18,925 | | | $19,636 | | | $17,675 | | | -4% | | 7% |
| | | | | | | | | | |
Expenses | | $10,593 | | | $10,765 | | | $10,759 | | | -2% | | -2% |
| | | | | | | | | | |
Net Credit Losses | | 1,838 | | | 1,948 | | | 2,162 | | | -6% | | -15% |
Loan Loss Reserve Build/(Release) (a) | | (311 | ) | | (299 | ) | | (740 | ) | | -4% | | 58% |
Provision for Benefits and Claims | | 46 | | | 63 | | | 49 | | | -27% | | -6% |
Total Cost of Credit | | $1,573 | | | $1,712 | | | $1,471 | | | -8% | | 7% |
| | | | | | | | | | |
Net Income | | $4,752 | | | $4,602 | | | $3,856 | | | 3% | | 23% |
| | | | | | | | | | |
| | | | | | | | | | |
Revenues | | | | | | | | | | |
North America | | 8,318 | | | 8,706 | | | 7,782 | | | -4% | | 7% |
EMEA | | 3,451 | | | 3,102 | | | 2,878 | | | 11% | | 20% |
LATAM | | 3,541 | | | 3,528 | | | 3,271 | | | - | | 8% |
Asia | | 3,974 | | | 3,997 | | | 3,814 | | | -1% | | 4% |
Corporate/Other | | 103 | | | (7 | ) | | (296 | ) | | NM | | NM |
| | | | | | | | | | |
Net Income | | | | | | | | | | |
North America | | 2,136 | | | 2,377 | | | 1,835 | | | -10% | | 16% |
EMEA | | 1,014 | | | 639 | | | 673 | | | 59% | | 51% |
LATAM | | 900 | | | 855 | | | 828 | | | 5% | | 9% |
Asia | | 1,066 | | | 1,116 | | | 969 | | | -4% | | 10% |
Corporate/Other | | (364 | ) | | (385 | ) | | (449 | ) | | 5% | | 19% |
| | | | | | | | | | |
| | | | | | | | | | |
EOP Assets ($B) | | 1,753 | | | 1,733 | | | 1,725 | | | 1% | | 2% |
EOP Loans ($B)(b) | | 544 | | | 539 | | | 527 | | | 1% | | 3% |
EOP Deposits ($B) | | 874 | | | 868 | | | 852 | | | 1% | | 3% |
| | | | | | | | | | |
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. |
(a) Includes provision for unfunded lending commitments. | | | | | | | | |
(b) EOP loans includes Credicard loans of $3.1B in 1Q'13 and $3.2B in 2Q'12. Credicard was moved to discontinued operations as of 2Q'13. |
|
Citicorp Citicorp revenues of $19.4 billion in the second quarter 2013 increased by 11% from the prior year period. CVA/DVA, reported within
Securities and Banking, was $462 million in the second quarter 2013, compared to $198 million in the prior year period. Excluding CVA/DVA and the Akbank loss in the second quarter 2012, revenues were $18.9 billion, up 7% from the second quarter 2012, driven by 21% growth in
Securities and Banking revenues
to $6.4 billion and 2% growth in
GCB revenues to $9.7 billion, partially offset by a 1% decline in
CTS revenues to $2.7 billion.
Corporate/Other revenues were $103 million in the second quarter 2013, versus $(296) million in the prior year period, which included the $424 million loss on the Akbank sale.
Citicorp net income increased 23% from the prior year period to $4.8 billion, as revenue growth, lower operating expenses and lower net credit losses were partially offset by lower loan loss reserve releases and a higher effective tax rate.
Citicorp operating expenses decreased 2% from the prior year period to $10.6 billion, largely reflecting lower legal and related costs.
Citicorp cost of credit of $1.6 billion in the second quarter 2013 increased 7% from the prior year period. The increase reflected a lower loan loss reserve release, which declined 58% to $311 million, partially offset by lower net credit losses, which declined 15% to $1.8 billion, each compared to the prior year period. The decline in reserve releases was largely in
North America GCB and primarily
related to cards. Citicorp’s consumer loans 90+ days delinquent declined 14% from the prior year period to $2.6 billion, and the 90+ days delinquency ratio decreased 15 basis points to 0.94% of loans.
Citicorp end of period loans grew 3% versus the prior year period to $544 billion. Corporate loans grew 7% to $260 billion, including the impact of adding approximately $7 billion of previously unconsolidated assets during the current quarter, while consumer loans were flat at $284 billion, both versus the prior year period.
|
Global Consumer Banking |
| | | | | | | | | | |
(in millions of dollars) | | 2Q'13 | | 1Q'13 | | 2Q'12 | | QoQ% | | YoY% |
| | | | | | | | | | |
North America | | 5,052 | | | 5,110 | | | 5,102 | | | -1% | | -1% |
EMEA | | 364 | | | 368 | | | 358 | | | -1% | | 2% |
LATAM | | 2,327 | | | 2,311 | | | 2,095 | | | 1% | | 11% |
Asia | | 1,968 | | | 1,960 | | | 1,952 | | | - | | 1% |
Total Revenues | | $9,711 | | | $9,749 | | | $9,507 | | | - | | 2% |
| | | | | | | | | | |
Expenses | | $5,131 | | | $5,209 | | | $5,183 | | | -1% | | -1% |
| | | | | | | | | | |
Net Credit Losses | | 1,785 | | | 1,909 | | | 2,039 | | | -6% | | -12% |
Loan Loss Reserve Build/(Release) (a) | | (228 | ) | | (325 | ) | | (753 | ) | | 30% | | 70% |
Provision for Benefits and Claims | | 46 | | | 63 | | | 50 | | | -27% | | -8% |
Total Cost of Credit | | $1,603 | | | $1,647 | | | $1,336 | | | -3% | | 20% |
| | | | | | | | | | |
Net Income | | $1,949 | | | $1,912 | | | $1,972 | | | 2% | | -1% |
| | | | | | | | | | |
| | | | | | | | | | |
Net Income | | | | | | | | | | |
North America | | 1,123 | | | 1,113 | | | 1,174 | | | 1% | | -4% |
EMEA | | 23 | | | 4 | | | 12 | | | NM | | 92% |
LATAM | | 371 | | | 378 | | | 337 | | | -2% | | 10% |
Asia | | 432 | | | 417 | | | 449 | | | 4% | | -4% |
| | | | | | | | | | |
| | | | | | | | | | |
(in billions of dollars) | | | | | | | | | | |
Avg. Cards Loans(b) | | 138 | | | 144 | | | 144 | | | -4% | | -5% |
Avg. Retail Banking Loans | | 145 | | | 147 | | | 139 | | | -1% | | 5% |
Avg. Deposits | | 326 | | | 330 | | | 318 | | | -1% | | 3% |
Investment Sales | | 28 | | | 28 | | | 20 | | | -1% | | 42% |
Cards Purchase Sales | | 91 | | | 84 | | | 88 | | | 9% | | 3% |
| | | | | | | | | | |
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. | |
(a) Includes provision for unfunded lending commitments. | | | | | | | | |
(b) Average Cards loans includes Credicard loans of $3.2B in 1Q'13 and $3.3B in 2Q'12. Credicard was moved to discontinued operations as of 2Q'13. |
|
Global Consumer Banking GCB revenues of $9.7 billion increased 2% versus the prior year period as volume growth in most businesses was offset by the continued impact of spread compression globally. The impact of foreign exchange translation into U.S. dollars
6 had a positive impact on international
GCB revenues in the second quarter 2013, with revenues up 6% on a reported basis. Excluding the impact of foreign exchange (constant dollar basis),
revenues in international
GCB grew 5% to $4.7 billion. Higher international
GCB revenues were offset by a 1% decline in revenues in
North America GCB to $5.1 billion.
GCB net income declined 1% versus the prior year period to $1.9 billion, despite the higher revenues, predominantly driven by lower loan loss reserve releases, partially offset by lower net credit losses and operating expenses.
North America GCB revenues declined 1% to $5.1 billion versus the prior year period driven mainly by lower retail banking revenues with total cards revenues (Citi-branded cards and Citi retail services) remaining roughly flat. Retail banking revenues declined 4% to $1.6 billion from the second quarter 2012, reflecting lower mortgage origination and servicing revenues and ongoing spread compression, partially offset by a gain of approximately $180 million on the sale of a mortgage portfolio during the quarter. Retail banking revenues are expected to continue to be negatively impacted by lower mortgage origination revenues and spread compression. Citi-branded cards revenues declined 1% to $2.0 billion, reflecting a 5% decline in average loans partially offset by an improvement in net interest spreads. Citi retail services revenues increased 1% to $1.5 billion as improved net interest spreads were partially offset by a 2% decline in average loans versus the prior year period. Citi retail services revenues were also negatively impacted by higher contractual partner revenue share payments due to the impact of improving credit trends.
North America GCB net income was $1.1 billion, 4% lower than the second quarter 2012. The decline in net income was driven by a reduction in the loan loss reserve release and lower revenues, partially offset by lower net credit losses and operating expenses. Operating expenses in the second quarter declined 3% versus the prior year period to $2.4 billion, reflecting lower legal and related costs.
North America GCB credit quality continued to improve in both cards and retail banking as net credit losses declined 21% to $1.2 billion as compared to the prior year period. Net credit losses improved in Citi-branded cards (down 21% to $665 million), Citi retail services (down 21% to $481 million) and in retail banking (down 29% to $44 million), each versus the prior year period.
International GCB revenues grew 6% to $4.7 billion from the prior year period. Revenues grew 5% on a constant dollar basis, with 8% growth in
Latin America to $2.3 billion, a 2% increase in
Asia to $2.0 billion and a 2% increase in
EMEA to $364 million.
International GCB net income increased 4% from the prior year period to $826 million as revenue growth was partially offset by higher cost of credit and higher operating expenses, as well as a higher effective tax rate. Operating expenses in the second quarter 2013 increased 1% to $2.7 billion driven by volume growth, partially offset by efficiency savings. Credit costs increased 21% versus the prior year period, reflecting portfolio growth and seasoning, as well as reserve builds for specific credits in the commercial market businesses.
International GCB credit quality remained stable. Net credit losses rose 13% to $595 million from the prior year period, mainly driven by loan growth and portfolio seasoning, but were down 9% from first quarter net credit losses of $654 million. The international net credit loss rate was 1.74% of average loans in the second quarter 2013, slightly improved from 1.88% in the first quarter 2013 and up from 1.59% in the prior year period.
|
Securities and Banking |
| | | | | | | | | | |
(in millions of dollars) | | 2Q'13 | | 1Q'13 | | 2Q'12 | | QoQ% | | YoY% |
| | | | | | | | | | |
Investment Banking | | 1,039 | | | 1,063 | | | 860 | | | -2% | | 21% |
Equity Markets | | 942 | | | 826 | | | 561 | | | 14% | | 68% |
Fixed Income Markets | | 3,372 | | | 4,623 | | | 2,861 | | | -27% | | 18% |
Lending | | 424 | | | 309 | | | 571 | | | 37% | | -26% |
Private Bank | | 645 | | | 629 | | | 591 | | | 3% | | 9% |
Other Securities and Banking | | (43 | ) | | (162 | ) | | (171 | ) | | 73% | | 75% |
Total Revenues (Ex-CVA/DVA) | | $6,379 | | | $7,288 | | | $5,273 | | | -12% | | 21% |
| | | | | | | | | | |
CVA/DVA | | 462 | | | (310 | ) | | 198 | | | NM | | NM |
Total Revenues | | $6,841 | | | $6,978 | | | $5,471 | | | -2% | | 25% |
| | | | | | | | | | |
Expenses | | $3,495 | | | $3,564 | | | $3,568 | | | -2% | | -2% |
| | | | | | | | | | |
Net Credit Losses | | 37 | | | 35 | | | 97 | | | 6% | | -62% |
Credit Reserve Build/(Release) (a) | | (116 | ) | | 37 | | | (38 | ) | | NM | | NM |
Total Cost of Credit | | $(79 | ) | | $72 | | | $59 | | | NM | | NM |
| | | | | | | | | | |
Net Income | | $2,364 | | | $2,311 | | | $1,449 | | | 2% | | 63% |
| | | | | | | | | | |
| | | | | | | | | | |
Revenues | | | | | | | | | | |
North America | | 2,599 | | | 2,970 | | | 2,017 | | | -12% | | 29% |
EMEA | | 2,166 | | | 1,873 | | | 1,612 | | | 16% | | 34% |
LATAM | | 747 | | | 770 | | | 730 | | | -3% | | 2% |
Asia | | 1,329 | | | 1,365 | | | 1,112 | | | -3% | | 20% |
| | | | | | | | | | |
Income from Continuing Ops. | | | | | | | | | | |
North America | | 849 | | | 1,152 | | | 549 | | | -26% | | 55% |
EMEA | | 787 | | | 445 | | | 365 | | | 77% | | NM |
LATAM | | 350 | | | 312 | | | 309 | | | 12% | | 13% |
Asia | | 396 | | | 446 | | | 252 | | | -11% | | 57% |
| | | | | | | | | | |
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. |
(a) Includes provision for unfunded lending commitments. |
| | | | | | | | |
Securities and Banking Securities and Banking revenues rose 25% from the prior year period to $6.8 billion. Excluding the impact of the $462 million of CVA/DVA in the second quarter 2013 (compared to $198 million in the prior year period),
Securities and Banking revenues were $6.4 billion, 21% higher than the prior year period.
Investment Banking revenues of $1.0 billion increased 21% from the prior year period, with growth in all major products. Debt underwriting revenues increased 14% to $558 million and equity underwriting revenues increased 58% to $266 million. Advisory revenues of $215 million were 6% higher than the prior year period.
Equity Markets revenues of $942 million in the second quarter 2013 (excluding $28 million of CVA/DVA) were 68% above the prior year period, reflecting improved derivatives performance as well as higher cash volumes.
Fixed Income Markets revenues of $3.4 billion in the second quarter 2013 (excluding $433 million of CVA/DVA) increased 18% from the prior year driven by growth in all major products.
Lending revenues decreased to $424 million from the prior year period, mostly reflecting a lower mark-to-market gain on hedges related to accrual loans of $23 million (compared to a $156 million mark-to-market gain in the prior year period).
7 Excluding the mark-to-market impact on hedges related to accrual loans, core lending revenues declined 3% to $401 million versus the prior year period as lower volumes were partially offset by slightly higher spreads.
Private Bank revenues increased 9% to $645 million from the prior year period, with growth across all regions, primarily driven by investment products.
Securities and Banking net income was $2.4 billion in the second quarter 2013. Excluding CVA/DVA, net income rose 57% to $2.1 billion from the prior year period, primarily reflecting the increase in revenues and a decline in operating expenses, partially offset by a higher effective tax rate.
|
Transaction Services |
| | | | | | | | | | | | | | | | | | | | |
(in millions of dollars) | | | | 2Q'13 | | | | 1Q'13 | | | | 2Q'12 | | | | QoQ% | | | | YoY% |
| | | | | | | | | | | | | | | | | | | | |
Treasury and Trade Solutions | | | | 2,002 | | | | 1,922 | | | | | 2,074 | | | | 4% | | | | -3% |
Securities and Fund Services | | | | 730 | | | | 684 | | | | | 693 | | | | 7% | | | | 5% |
Total Revenues | | | | $2,732 | | | | $2,606 | | | | | $2,767 | | | | 5% | | | | -1% |
| | | | | | | | | | | | | | | | | | | | |
Expenses | | | | $1,442 | | | | $1,424 | | | | | $1,411 | | | | 1% | | | | 2% |
| | | | | | | | | | | | | | | | | | | | |
Net Credit Losses | | | | 16 | | | | 4 | | | | | 25 | | | | NM | | | | -36% |
Loan Loss Reserve Build/(Release) (a) | | | | 33 | | | | (11 | ) | | | | 51 | | | | NM | | | | -35% |
Total Cost of Credit | | | | $49 | | | | $(7 | ) | | | | $76 | | | | NM | | | | -36% |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $803 | | | | $764 | | | | | $884 | | | | 5% | | | | -9% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Average Deposits ($ in billions) (b) | | | | $424 | | | | $415 | | | | | $396 | | | | 2% | | | | 7% |
EOP Assets Under Custody ($ in trillions) | | | | $13.4 | | | | $13.5 | | | | | $12.2 | | | | -1% | | | | 10% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | |
North America | | | | 667 | | | | 626 | | | | | 663 | | | | 7% | | | | 1% |
EMEA | | | | 921 | | | | 861 | | | | | 908 | | | | 7% | | | | 1% |
LATAM | | | | 467 | | | | 447 | | | | | 446 | | | | 4% | | | | 5% |
Asia | | | | 677 | | | | 672 | | | | | 750 | | | | 1% | | | | -10% |
| | | | | | | | | | | | | | | | | | | | |
Income from Continuing Ops. | | | | | | | | | | | | | | | | | | | | |
North America | | | | 161 | | | | 129 | | | | | 122 | | | | 25% | | | | 32% |
EMEA | | | | 229 | | | | 223 | | | | | 317 | | | | 3% | | | | -28% |
LATAM | | | | 179 | | | | 164 | | | | | 181 | | | | 9% | | | | -1% |
Asia | | | | 239 | | | | 254 | | | | | 269 | | | | -6% | | | | -11% |
| | | | | | | | | | | | | | | | | | | | |
(a) Includes provision for unfunded lending commitments. |
(b) Average deposits and other customer liability balances. |
|
Transaction Services Transaction Services revenues of $2.7 billion declined 1% from the prior year period.
Treasury and Trade Solutions (TTS) revenues of $2.0 billion declined 3% from the prior year period as the impact of continued spread compression globally offset loan and deposit growth.
Securities and Fund Services (
SFS) revenues of $730 million increased 5% from the prior year period (6% in constant dollars), as higher settlement volumes and fees more than offset lower net interest spreads.
Transaction Services net income of $803 million declined 9% from the second quarter 2012, reflecting the decline in revenues and a higher effective tax rate, partially offset by lower credit costs.
Transaction Services average deposits and other customer liability balances grew 7% versus the prior year period to $424 billion. Assets under custody increased 10% from the second quarter 2012 to $13.4 trillion.
|
CITI HOLDINGS |
| | | | | | | | | | |
(in millions of dollars) | | 2Q'13 | | 1Q'13 | | 2Q'12 | | QoQ% | | YoY% |
| | | | | | | | | | |
Brokerage and Asset Management | | (20 | ) | | (17 | ) | | 87 | | | -18% | | NM |
Local Consumer Lending | | 1,055 | | | 1,056 | | | 932 | | | - | | 13% |
Special Asset Pool | | 57 | | | (138 | ) | | (81 | ) | | NM | | NM |
Total Revenues | | $1,092 | | | $901 | | | $938 | | | 21% | | 16% |
| | | | | | | | | | |
Total Revenues (Ex-CVA / DVA) | | $1,077 | | | $910 | | | $917 | | | 18% | | 17% |
| | | | | | | | | | |
Expenses | | $1,547 | | | $1,502 | | | $1,235 | | | 3% | | 25% |
| | | | | | | | | | |
Net Credit Losses | | 770 | | | 930 | | | 1,329 | | | -17% | | -42% |
Loan Loss Reserve Build/(Release) (a) | | (473 | ) | | (351 | ) | | (269 | ) | | -35% | | -76% |
Provision for Benefits and Claims | | 154 | | | 168 | | | 165 | | | -8% | | -7% |
Total Cost of Credit | | $451 | | | $747 | | | $1,225 | | | -40% | | -63% |
| | | | | | | | | | |
Net Income (Loss) | | $(570 | ) | | $(794 | ) | | $(910 | ) | | 28% | | 37% |
| | | | | | | | | | |
| | | | | | | | | | |
Net Income (Loss) | | | | | | | | | | |
Brokerage and Asset Management | | (54 | ) | | (84 | ) | | (25 | ) | | 36% | | NM |
Local Consumer Lending | | (134 | ) | | (293 | ) | | (819 | ) | | 54% | | 84% |
Special Asset Pool | | (382 | ) | | (417 | ) | | (66 | ) | | 8% | | NM |
| | | | | | | | | | |
| | | | | | | | | | |
EOP Assets ($ in billions) | | | | | | | | | | |
Brokerage and Asset Management | | 1 | | | 9 | | | 22 | | | -89% | | -95% |
Local Consumer Lending | | 115 | | | 122 | | | 137 | | | -6% | | -16% |
Special Asset Pool | | 15 | | | 18 | | | 32 | | | -17% | | -53% |
| | | | | | | | | | |
| | | | | | | | | | |
EOP Loans ($B) | | 100 | | | 108 | | | 128 | | | -7% | | -22% |
EOP Deposits ($B) | | 65 | | | 66 | | | 63 | | | -2% | | 3% |
| | | | | | | | | | |
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. |
(a) Includes provision for unfunded lending commitments. |
| | | | | | | | |
Citi Holdings Citi Holdings revenues increased 16% versus the prior year period to $1.1 billion, including CVA/DVA reported within
Special Asset Pool of $15 million (compared to $21 million in the prior year period). Excluding CVA/DVA, Citi Holdings revenues increased 17%.
Local Consumer Lending revenues of $1.1 billion increased 13% from the prior year period, driven by lower funding costs. Excluding CVA/DVA,
Special Asset Pool revenues improved to $42 million in the second quarter 2013, compared to $(102) million in the prior year period, mainly reflecting lower funding costs and improved asset marks.
Brokerage and Asset Management revenues were $(20) million, compared to $87 million in the prior year period, reflecting lower Morgan Stanley Smith Barney (MSSB) joint venture related revenues. As previously announced, Citigroup completed the sale of its remaining 35% stake in the MSSB joint venture during the current quarter. As of the end of the second quarter 2013, total Citi Holdings assets were $131 billion, 31% below the prior year period, and represented approximately 7% of total Citigroup assets.
Citi Holdings net loss of $570 million compared to a net loss of $910 million in the prior year period as higher revenues and lower cost of credit were partially offset by higher expenses. Expenses increased 25% to $1.5 billion, primarily due to higher legal and related expenses ($702 million in second quarter 2013 compared to $202 million in the prior year period).
Citi Holdings cost of credit declined 63% to $451 million versus the prior year period as net credit losses declined by $559 million or 42% from the prior year period and the net loan loss reserve release increased to $473 million, compared to a net release of $269 million in the prior year period.
Citi Holdings allowance for credit losses was $8.2 billion at the end of the second quarter 2013, or 8.1% of loans, compared to $12.2 billion, or 9.6% of loans, in the prior year period. 90+ days delinquent loans in
Local Consumer Lending decreased 40% to $3.2 billion, or 3.6% of loans.
|
RESULTS BY REGION AND SEGMENT |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | Revenues | | | | Income from Continuing Ops. |
(in millions of dollars) | | | | | 2Q'13 | | | 1Q'13 | | | 2Q'12 | | | | 2Q'13 | | | 1Q'13 | | | 2Q'12 |
| | | | | | | | | | | | | | | | | | | | | |
North America | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Banking | | | | | 5,052 | | | 5,110 | | | | 5,102 | | | | | 1,124 | | | | 1,113 | | | | 1,174 | |
Securities and Banking | | | | | 2,599 | | | 2,970 | | | | 2,017 | | | | | 849 | | | | 1,152 | | | | 549 | |
Transaction Services | | | | | 667 | | | 626 | | | | 663 | | | | | 161 | | | | 129 | | | | 122 | |
Total North America | | | | | $8,318 | | | $8,706 | | | | $7,782 | | | | | $2,134 | | | | $2,394 | | | | $1,845 | |
| | | | | | | | | | | | | | | | | | | | | |
EMEA | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Banking | | | | | 364 | | | 368 | | | | 358 | | | | | 28 | | | | 7 | | | | 13 | |
Securities and Banking | | | | | 2,166 | | | 1,873 | | | | 1,612 | | | | | 787 | | | | 445 | | | | 365 | |
Transaction Services | | | | | 921 | | | 861 | | | | 908 | | | | | 229 | | | | 223 | | | | 317 | |
Total EMEA | | | | | $3,451 | | | $3,102 | | | | $2,878 | | | | | $1,044 | | | | $675 | | | | $695 | |
| | | | | | | | | | | | | | | | | | | | | |
Latin America | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Banking | | | | | 2,327 | | | 2,311 | | | | 2,095 | | | | | 371 | | | | 380 | | | | 335 | |
Securities and Banking | | | | | 747 | | | 770 | | | | 730 | | | | | 350 | | | | 312 | | | | 309 | |
Transaction Services | | | | | 467 | | | 447 | | | | 446 | | | | | 179 | | | | 164 | | | | 181 | |
Total Latin America | | | | | $3,541 | | | $3,528 | | | | $3,271 | | | | | $900 | | | | $856 | | | | $825 | |
| | | | | | | | | | | | | | | | | | | | | |
Asia | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Banking | | | | | 1,968 | | | 1,960 | | | | 1,952 | | | | | 432 | | | | 417 | | | | 449 | |
Securities and Banking | | | | | 1,329 | | | 1,365 | | | | 1,112 | | | | | 396 | | | | 446 | | | | 252 | |
Transaction Services | | | | | 677 | | | 672 | | | | 750 | | | | | 239 | | | | 254 | | | | 269 | |
Total Asia | | | | | $3,974 | | | $3,997 | | | | $3,814 | | | | | $1,067 | | | | $1,117 | | | | $970 | |
| | | | | | | | | | | | | | | | | | | | | |
Corporate/Other | | | | | $103 | | | ($7 | ) | | | ($296 | ) | | | | ($388 | ) | | | ($322 | ) | | | ($447 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Citicorp | | | | | $19,387 | | | $19,326 | | | | $17,449 | | | | | $4,757 | | | | $4,720 | | | | $3,888 | |
| | | | | | | | | | | | | | | | | | | | | |
Citi Holdings | | | | | $1,092 | | | $901 | | | | $938 | | | | | $(569 | ) | | | $(789 | ) | | | $(909 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Citigroup | | | | | $20,479 | | | $20,227 | | | | $18,387 | | | | | $4,188 | | | | $3,931 | | | | $2,979 | |
| | | | | | | | | | | | | | | | | | | | | |
Citigroup will host a conference call today at 10:00 AM (EDT). A live webcast of the presentation, as well as financial results and presentation materials, will be available at
http://www.citigroup.com/citi/investor. Dial-in numbers for the conference call are as follows: (866) 516-9582 in the U.S. and Canada; (973) 409-9210 outside of the U.S. and Canada. The conference code for both numbers is 92855981.
Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.