Financial highlights for Q3 2012:
- Citigroup Revenues of $14.0 Billion; $19.4 Billion Excluding CVA/DVA and Loss on MSSB
- Citicorp Net Income of $4.6 Billion Excluding CVA/DVA
- Basel I Tier 1 Common Ratio of 12.7%; Estimated Basel Iii Tier 1 Common Ratio Increased To 8.6%4
- Book Value per Share Increased to $63.59; Tangible Book Value per Share5 Increased to $52.70
- Citigroup Deposits of $945 Billion Grew 11% Versus Prior Year Period
- Citigroup Loans of $658 Billion Grew 3% Versus Prior Year Period
- Citicorp Loans of $537 Billion Grew 11% Versus Prior Year Period
- Citi Holdings Assets of $171 Billion Declined 31% from Prior Year Period and Represented 9% of Total Citigroup Assets
New York, October 15th 2012 – Citigroup Inc. today reported net income for the third quarter 2012 of $468 million, or $0.15 per diluted share, on revenues of $14.0 billion. CVA/DVA was a negative $776 million in the third quarter, resulting from the improvement in Citi’s credit spreads, compared to a positive $1.9 billion in the prior year period. Third quarter results also included a pre-tax loss of $4.7 billion ($2.9 billion after-tax) from the previously announced sale of a 14% interest and other-than-temporary impairment of the carrying value of Citi’s remaining 35% interest in the Morgan Stanley Smith Barney (MSSB) joint venture. In addition, third quarter results included a $582 million tax benefit related to the resolution of certain tax audit items. Excluding CVA/DVA and the loss on MSSB, third quarter revenues were $19.4 billion, up 3% from the prior period. Excluding CVA/DVA, the loss on MSSB and the tax benefit, earnings were $1.06 per diluted share, up 26% from the prior year period.
Vikram Pandit, Citi’s Chief Executive Officer, said: “Our core businesses showed momentum during the quarter as we increased lending and generated higher operating revenues. These earnings highlight the strength of Citicorp and its diversification by product and region. For the third straight quarter, we had positive operating leverage in each of our three core businesses. Citigroup in total also had positive operating leverage as Citi Holdings had a smaller impact on our overall results.
"Last month’s price agreement on MSSB has given us more certainty on our exit from that business and added to the reduction of Citi Holdings, which is now only 9% of our balance sheet. We generated additional capital during the quarter, and our Tier 1 Common Ratio was estimated at 8.6% on a Basel III basis at the end of the period. We are managing risk very carefully given global economic conditions so we can continue to grow our businesses safely and soundly,” concluded Mr. Pandit.
Re-disseminated by The Asian Banker