Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
19th July 2011
Citi gains as loan losses fall
Citigroup reported net attributable of $3,431m (€2,425m £2,128m ¥271.6bn Y22,175m) for Q2 and $6,340m (€4,482m £3,933m ¥501.8bn Y40,976m) UP 27% and DOWN 11% respectively.
Loan losses provide the gain at a time when other trends are moving in the wrong direction. The Q2 gain pre-tax gain is of $772m and the reduction in loan losses and provisions is $3.28bn. Revenues are down $1.4bn for the quarter, arising from NII with non-interest income marginally up. Meanwhile expenses are up almost $1.1bn. A factor on expense is the foreclosure problems and other regulatory and legal issues.
Overall there are few surprises within the results. The bank is on track certainly to meet general Basel III capital requirements next year, before any addition due to the finalisation of the additional capital surcharge required for Systemically Important (TBTF) banks the US authorities may apply.
2Q 2Q 6 mths 6 mths
2011 2010 2011 2010
$m $m $m $m
Revenues
Interest revenue 18,586 20,356 36,741 41,139
Interest expense 6,438 6,429 12,491 12,771
_________________________________________
Net interest revenue 12,148 13,927 24,250 28,368
Commissions and fees 3,557 3,229 6,925 6,874
Principal transactions 2,616 2,362 5,783 6,478
Administrative and other fiduciary fees 1,068 910 2,165 1,932
Realized gains (losses) on investments 412 69 (715) 100
Insurance premiums 684 636 1,356 1,384
Other revenue 137 938 584 2,356
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Total non-interest revenues 8,474 8,144 16,098 19,124
Total revenues, net of interest expense 20,622 22,071 40,348 47,492
Provisions for Credit Losses and
for Benefits and Claims
Net credit losses 5,147 7,962 11,416 16,346
Credit reserve build / (release) (1,966) (1,439) (5,336) (1,457)
_________________________________________
Provision for loan losses 3,181 6,523 6,080 14,889
Policyholder benefits and claims 219 213 479 500
Provision for unfunded lending commitments (13) (71) 12 (106)
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Total provisions for credit losses etc. 3,387 6,665 6,571 15,283
Operating Expenses
Compensation and benefits 6,669 5,961 13,078 12,123
Premises and Equipment 832 824 1,657 1,654
Technology / communication expense 1,275 1,195 2,489 2,394
Advertising and marketing expense 627 367 1,024 669
Other operating 3,533 3,519 7,014 6,544
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Total operating expenses 12,936 11,866 25,262 23,384
Pre-tax Income from Continuing Operations 4,299 3,540 8,515 8,825
Provision (benefits) for income taxes 967 812 2,152 1,848
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Income from Continuing Operations 3,332 2,728 6,363 6,977
Income (Loss) from Discontinued Operations (17) (3) 43 (8)
Gain (Loss) on Sale 126 - 130 94
Provision (benefits) for income taxes 38 - 62 (122)
_______________________________________
Net Income (Loss) from Discontinued Operations 71 (3) 111 208
Net Income 3,403 2,725 6,474 7,185
Attributable to noncontrolling interests 62 28 134 60
________________________________________
Citigroup's Net Income 3,341 2,697 6,340 7,125