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Journalism of Courage
Financial services giant Vikram Pandit-led Citigroup Inc today reported 2 per cent drop in net income to USD 2.93 billion for the first three months of 2012 due to decline in investment income from capital markets operations.
In the year-ago period,the entity had registered net income of USD 2.99 billion,Citigroup said in a statement.
Citigroup8217;s revenues decreased by 1.6 per cent from year-earlier to USD 19.40 billion in the January-March quarter of 2012,but surged 13 per cent from the preceding quarter quarter.
8220;While the operating environment improved in the first quarter,there is still much macro uncertainty and we will continue to manage risk carefully. We will continue to leverage the depth and the scale of our global presence to serve our clients and grow our businesses,8221; Citi CEO Vikram Pandit said.
Citigroup8217;s loan book rose by 12 per cent from a year earlier,to USD 514 billion in the quarter under review.
8220;While our businesses operated in an improved environment,we also saw the benefit of our investments. We generated revenue growth and had positive operating leverage across all three of Citi8217;s core businesses,8221; he added.
Citicorp,the firm8217;s core business,revenues stood at USD 18 billion in the first quarter 2012,a slight decline of one per cent from the prior year period.
Revenue at Citi8217;s capital markets business securities trading and investment banking stood at USD 5.2 billion in the quarter under review,a 12 per cent decline from a year earlier. There was,however,an improvement on this account on sequential basis as the fourth quarter earning was USD 3.2 billion in the fourth quarter.
However,transaction services revenues were up 7 per cent from the year-ago period to USD 2.7 billion.
The company8217;s global consumer banking business registered a 5 per cent increase in revenue from a year earlier and one per cent from the fourth quarter,to USD 10 billion.
Citi Holdings revenues plunged by 47 per cent from the prior year period to USD 874 million in the quarter under review.
8220;We continued to wind down our Citi Holdings legacy portfolio,which now stands at 11 per cent of our total assets,while further building capital,8221; Pandit said.
