Citigroup Q1 Net Income Declines; Revenues Down 2%

Citigroup Inc. (C) said its first quarter net income of $4.3 billion decreased 46% from the prior-year period, driven by higher cost of credit, higher expenses, and the lower revenues. The company noted that its results for the quarter included Asia Consumer divestiture-related impacts of approximately $677 million, recorded in Legacy Franchises. Earnings per share of $2.02 decreased 44% from the prior-year period, reflecting the lower net income, partly offset by a 6% decline in shares outstanding.

Analysts on average had expected the company to earn $1.55 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

First quarter revenues decreased 2% to $19.2 billion from the prior-year period, as higher net interest income driven by Services in Institutional Clients Group and Personal Banking and Wealth Management was more than offset by lower non-interest revenue across businesses. Analysts on average had estimated $18.15 billion in revenue.

Citigroup's end-of-period deposits were $1.3 trillion as of quarter end, an increase of 3% from prior-year period. End-of-period loans were $660 billion as of quarter end, down 1% from prior-year period.

"While we are making necessary investments in our infrastructure, risk and controls and our businesses, we remain committed to improving our returns over the medium term," Citi CEO Jane Fraser said.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The US Centers for Disease Control and Prevention or CDC has ended recommendations for social distancing and quarantine with a view to minimize covid-19's impact on persons, communities, and health care systems. The agency also ended recommendation for test-to-stay in schools, CNN noted. Healthcare major Johnson & Johnson, which is in the middle of a talcum powder fiasco, said it is discontinuing talc-based JOHNSON'S Baby Powder globally in 2023. The company plans to transition to an all cornstarch-based baby powder portfolio. According to the company, the commercial decision to use cornstarch in all its baby powder products was made after conducting an assessment of its portfolio Walt Disney's streaming service Disney+ is rolling out its much-anticipated new ad-supported subscription plan for Disney+ in the U.S. as part of its bid to stem the loss and make its streaming business profitable after the services posted a hefty operating loss of more than $1 billion in the third quarter. It is also raising pricing for its bundled subscription plans with Hulu, ESPN+ and live TV.
Follow RTT