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.

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