New York, NY (BBN)- Citigroup has reported third quarter 2010 net income of $2.2 billion or $0.07 per diluted share, marking its third consecutive quarterly operating profit.
Citigroup income from continuing operations, which excludes an $800 million pre-tax ($435 million after-tax) loss on the previously-announced sale of the Student Loan Corporation (“SLC”), was $2.6 billion or $0.08 per diluted share in the third quarter 2010, a press statement said on Monday.
In the first nine months of 2010, Citigroup earned $9.3 billion of net income and $9.6 billion of income from continuing operations.
“Achieving our third straight quarter of positive operating earnings is continued evidence that we are successfully executing our strategy and we believe we have put in place all the elements for continued profitability. We remain completely focused on serving our clients with excellence and capturing the growth potential inherent in the core businesses within Citicorp, while reducing the size of Citi Holdings as quickly as economically practical,” said Vikram Pandit, Chief Executive Officer of Citi.
Net income was down $529 million, or 20 percent, from the second quarter 2010, mainly driven by the loss on the previously-announced sale of SLC, as well as securities and banking, which declined 17 percent.
Regional consumer banking net income of $1.2 billion increased 5.0 percent from the prior quarter, driven by Latin America and North America.
Besides, transaction services net income of $920 million was down 1.0 percent from the prior quarter, reflecting consistent strength in the business, despite a low rate environment, and continued investments, as growth in Latin America and Asia was offset by declines in North America and EMEA.
Third quarter 2010 revenues of $20.7 billion declined $1.3 billion, or 6.0 percent, from the second quarter 2010, primarily driven by local consumer lending and securities and banking.
“Citicorp Latin America and Asia revenues were up 7.0 percent and 1.0 percent, respectively, from the prior quarter, while North America and EMEA revenues declined 6.0 percent and 2.0 percent, respectively,” the statement added.
Provisions for credit losses and for benefits and claims declined $746 million sequentially to $5.9 billion, the lowest level since the second quarter of 2007, reflecting continued improvement in credit quality.
Expenses of $11.5 billion decreased $346 million, or 3.0 percent, from the prior quarter. Excluding the impact of the U.K. bonus tax in the second quarter 2010, expenses increased $58 million, or 1.0 percent, reflecting continued investment spending in Citicorp, partially offset by lower Citi Holdings expenses.
During the quarter, Citi continued to focus on growing its core businesses in Citicorp, while divesting assets in Citi Holdings in an economically rational manner. Expressed on a pro forma basis for the previously-announced sale of SLC, Citi Holdings represented 20 percent of Citi’s assets at the end of the third quarter 2010, as compared to 38 percent in the first quarter 2008.
BBN/SSR/SI-19Oct10-4:22 pm (BST)