Citigroup reports $1.6 billion profit, $25 billion revenue in Q1

17 April 2009

Citigroup today reported net income of $1.6 billion in the first quarter of 2009, recording its first profit since the third quarter of 2007. The bank also reported revenues of $24.8 billion, driven by strong performance at the institutional clients group.

Citigroup, however, lost money but it was the smallest since 2007. The profit was partially offset by net write-downs, including $7.3 billion in net credit losses and a $2.7 billion net loan loss reserve.

Before paying dividends tied to the government's investment Citigroup earned $1.6 billion. The bank, however, registered a first-quarter loss of $966 million or 18 cents per its common shares after massive loan losses and dividends to preferred stockholders. Citigroup has 5,385 million shares outstanding.

The 18 cents per share loss was, however, narrower than the 34 cents analysts predicted and way below the loss of $1.03 a share (over $5 billion) reported a year ago.

The $0.18 loss per share reflected the reset in January 2009 of the conversion price of the $12.5 billion convertible preferred stock issued in a private offering in January 2008, the bank said. This did not have an impact on net income but resulted in a reduction to income available to common shareholders of $1.3 billion or $0.24 per share, it added.

The loss per share also reflected preferred stock dividends, which did not impact net income but reduced income available to common shareholders by $1.3 billion.