Citi moves back into profit
18 January 2011 New York
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Citigroup net income for full year 2010 was $10.6 billion, or $0.35 per diluted share, compared to a net loss of $1.6 billion, or $0.80 per share, in the full year 2009.
Citigroup revenues in the fourth quarter 2010 were $18.4 billion and included negative CVA of $1.1 billion. Excluding CVA, revenues of $19.5 billion were down six per cent from the prior quarter, principally driven by lower Securities and Banking revenues and lower gains on sale of AFS securities in Corporate/Other.
Citicorp's net income remained strong in 2010 at $14.9 billion, while Citi Holdings net loss decreased 52 per cent, from $8.9 billion to $4.2 billion, when compared to 2009. Citi Holdings' assets stood at $359 billion at the end of 2010, down from $487 billion at the end of 2009. This performance helped Citi to continue to improve its capital strength, as its Tier 1 Common ratio increased from 9.6 per cent to 10.7 per cent over the course of the year.
"2010 was a year full of milestones and was critical for the turnaround of this institution," said Vikram Pandit, chief executive officer of Citigroup. "Our goal was to achieve consistent profitability and I am very pleased that with our fourth consecutive profitable quarter, we earned $10.6 billion for the year.
"Our core businesses in Citicorp, with its deep roots in both the developed and emerging markets, performed well throughout the year while we made targeted investments in talent and technology. At the same time, we continued to wind down Citi Holdings in an economically rational manner, reducing assets by $128 billion in 2010 alone. Holdings' total assets have declined by more than half from their peak in 2008 to $359 billion and now stand at less than 20 per cent of our balance sheet.
"We have the right strategy for our company's present and future and are executing it with discipline. Although the economic environment remains uncertain, our future path is clear: As America's global bank, we've built a foundation capable of producing sustained profitability and our next goal is to achieve responsible growth," concluded Pandit.
Citigroup revenues in the fourth quarter 2010 were $18.4 billion and included negative CVA of $1.1 billion. Excluding CVA, revenues of $19.5 billion were down six per cent from the prior quarter, principally driven by lower Securities and Banking revenues and lower gains on sale of AFS securities in Corporate/Other.
Citicorp's net income remained strong in 2010 at $14.9 billion, while Citi Holdings net loss decreased 52 per cent, from $8.9 billion to $4.2 billion, when compared to 2009. Citi Holdings' assets stood at $359 billion at the end of 2010, down from $487 billion at the end of 2009. This performance helped Citi to continue to improve its capital strength, as its Tier 1 Common ratio increased from 9.6 per cent to 10.7 per cent over the course of the year.
"2010 was a year full of milestones and was critical for the turnaround of this institution," said Vikram Pandit, chief executive officer of Citigroup. "Our goal was to achieve consistent profitability and I am very pleased that with our fourth consecutive profitable quarter, we earned $10.6 billion for the year.
"Our core businesses in Citicorp, with its deep roots in both the developed and emerging markets, performed well throughout the year while we made targeted investments in talent and technology. At the same time, we continued to wind down Citi Holdings in an economically rational manner, reducing assets by $128 billion in 2010 alone. Holdings' total assets have declined by more than half from their peak in 2008 to $359 billion and now stand at less than 20 per cent of our balance sheet.
"We have the right strategy for our company's present and future and are executing it with discipline. Although the economic environment remains uncertain, our future path is clear: As America's global bank, we've built a foundation capable of producing sustained profitability and our next goal is to achieve responsible growth," concluded Pandit.
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