Citigroup Q1 net down nearly 50 per cent at $3 billion

Citigroup Inc today reported first quarter 2011 net income of $3.0 billion, or $0.10 per diluted share. Net income was down $1.4 billion compared to the first quarter of 2010, but more than double sequentially.

Citigroup earned a net income of $1.3 billion in the fourth quarter of 2010, with earnings per share of $0.04.

"After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline.

Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets," said Vikram Pandit, CEO of Citigroup.

Citigroup's first quarter 2011 revenues stood at $19.7 billion, up 7 per cent sequentially, but down 22 per cent from the first quarter 2010.

Citicorp revenues of $16.5 billion were 16 per cent higher sequentially, but 11 per cent lower than the prior year period.

The year over year decline was driven by lower revenues in fixed income markets and North America regional consumer banking, as well as negative CVA.
 
Citigroup said its credit continued to improve during the quarter, and net credit losses declined for the seventh consecutive quarter to $6.3 billion. In addition, the current quarter included a net $3.3 billion release of provision for loan losses and unfunded lending commitments.