Citigroup on Thursday reported a loss of 27 cents per share on revenues of $23.1bn for the third quarter of 2009.
Analysts had expected the bank to report a third-quarter loss of 38 cents a share on quarterly revenue of $20.04bn, according to a poll by Reuters.
Citigroup shares slid more than 3 per cent to $4.84 before the New York opening bell.
Here is the statement:
New York – Citigroup today reported net income for the third quarter 2009 of $101 million, and a $0.27 loss per share, based on an average 12.1 billion shares outstanding. Third quarter revenues were $20.4 billion. Results included $8.0 billion in net credit losses and an $802 million net loan loss reserve build.
During the third quarter, Citigroup completed its previously announced exchange offers. This resulted in an $851 million after-tax gain, but also in a $3.1 billion reduction in income available to common shareholders, resulting in an incremental net $0.18 loss per share. The reported loss per share also reflected preferred stock dividends, which did not affect net income but reduced income available to common shareholders by $288 million or $0.02 per share.Key Items
*Citigroup revenues were $20.4 billion. Managed revenues3 were $23.1 billion. Excluding a $1.4 billion gain from the impact of the exchange offers and the $11.1 billion Smith Barney gain on sale, managed revenues were stable versus the prior quarter.
*Citicorp revenues of $13.0 billion (managed revenues3 of $14.8 billion) included a negative $1.7 billion credit value adjustment (“CVA”).
*Citi Holdings revenues of $6.7 billion (managed revenues3 of $7.6 billion) included $1.5 billion of positive net revenue marks.
* Net credit losses remained elevated at $8.0 billion, but were down from $8.4 billion in the prior quarter. Managed net credit losses3 were $11.0 billion, down from $11.5 billion in the prior quarter.
* Net loan loss reserve build was $802 million, down from $3.9 billion in the prior quarter.
* The allowance for loan losses increased to $36.4 billion, or 5.9% of total loans.
* Completion of exchange offers resulted in an additional $64 billion of Tier 1 Common and $60 billion of Tangible Common Equity4. As a result, Tangible Common Equity and Tier 1 Common ratios improved during the third quarter to 10.3% and 9.1%, respectively. Tier 1 Capital remained stable at 12.7%. Tangible book value per share was $4.47.
* Deposits were $833 billion, up $28 billion from the second quarter of 2009. Deposit growth was strong in both Transaction Services and Regional Consumer Banking.
* Citi Holdings assets declined $32 billion to $617 billion during the quarter and are now down $281 billion from peak levels in the first quarter 2008.
* Enhanced liquidity position – ended the quarter with $244 billion in cash and due from banks, and deposits with banks, up from $209 billion at June 30, 2009.
* Completed sales of Nikko Cordial Securities and Nikko Asset Management on October 1, 2009, which will result in a further approximate $25 billion decline in Citi Holdings assets in the fourth quarter of 2009.
* Completed more than 24,000 mortgage loan modifications during the quarter. In addition, at the end of the quarter, Citigroup had more than 63,000 loans in the trial modification period under the Home Affordable Modification Program (“HAMP”).
Related links:
Goldman Sachs reports Q3 EPS of $5.25, net income $3.19bn – FT Alphaville
JP Morgan’s fixed fixed income – FT Alphaville