Citigroup posts $3.9bn net income
New York, July 15, 2014
Citigroup reported a stronger-than expected adjusted quarterly profit as its fixed-income business performed ahead of forecasts, and the bank cleared another hurdle by reaching a $7 billion settlement over its sale of flawed mortgage securities.
Including a charge of $3.8 billion related to the settlement, Citi's second-quarter earnings fell 96 per cent to $181 million, said a report in the Gulf Daily News (GDN), our sister publication.
But adjusted net income, which excludes the settlement charge and some changes to the value of the bank's debt, amounted to $3.93 billion, or $1.24 per share, compared with $3.89 billion, or $1.25 per share a year earlier.
Adjusted revenue from fixed income markets fell 12 per cent to $2.9 billion - a much better outcome than the drop of 20-25 per cent that chief financial officer John Gerspach had braced the market for in May.
Gerspach attributed better-than-expected performance to eased tensions in Russia and Ukraine during the latter part of the quarter.
Total profit in Citi's investment banking, capital markets and treasury services businesses fell 16 per cent to $4.08 billion. Adjusted revenue at Citicorp, which houses the bank's main continuing businesses, fell five per cent to $17.9 billion. Overall adjusted revenue fell three per cent to $19.38 billion. - TradeArabia News Service