Citigroup First Quarter Core Income of $3.86 Billion, UP 5%, after $816 million Pre-tax charge, or $519 million after-tax, related to Argentina.Business Editors NEW YORK--(BUSINESS WIRE)--April 15, 2002 Core EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Of $0.74, Up 4% Revenues Increase 5% to $22 Billion Net Income of $4.84 Billion, Up 37%, Including $1.06 Billion Gain On Travelers Property Casualty IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. Net Income Per Share of $0.93, Up 35% Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. Inc. (NYSE NYSE See: New York Stock Exchange :C) today reported core income for the first quarter ended March 31, 2002, of $3.86 billion, increasing 5% over the first quarter of 2001. Core income for the quarter included an $816 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , or $519 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , charge reflecting the impact of the economic conditions in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. . This charge reduced Citigroup's core income per share by $0.10 after-tax. In addition, Citigroup's equity was reduced by $512 million as a result of the effect of currency translation in Argentina. Core income per share, diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , rose 4% to $0.74, after the Argentina-related charges. Revenues increased 5%, or by nearly $1 billion, to $22 billion in the quarter. During the quarter, Citigroup's Travelers Property Casualty subsidiary successfully completed an initial public offering of 23.1% of the company's equity, yielding a $1.06 billion after-tax gain to Citigroup, net of a deferral deferral - Waiting for quiet on the Ethernet. of $520 million after-tax for potential asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. claims. Net income for the first quarter, including the gain, was $4.84 billion, or $0.93 per share. "Our businesses once again delivered exceptional results in the face of difficult economic conditions," said Sanford I. Weill Sanford I. Weill, commonly known as Sandy Weill (born March 16 1933) is a banker, financier and philanthropist. He was formerly the chief executive officer and chairman of Citigroup Inc. He served in those positions until October 1 2003 and April 18, 2006 respectively. , Chairman and Chief Executive Officer of Citigroup. "Despite the sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. charges that we took in the quarter, related to Argentina, our
core earnings per share increased over last year. Our Global Consumer
businesses recorded 26% income growth in the quarter on the strength of
20% revenue growth. Our Corporate and Investment Bank once again
outperformed its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , extending its lead as the top-ranked
global underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. . Our Global Investment Management and Private Banking group core income was up 6%, despite weak equity markets worldwide. "Recent events in Argentina, including the imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded. of currency translation regulations, the structuring of compensation bonds and the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of foreign exchange trading Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. For example, a speculator can long EUR/USD in foreign exchange market in order to profit from capturing the appreciation of Euro against the of the peso, have enabled us to determine with a greater degree of certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. the impact of the economic crisis in that country. Given this extraordinary situation, including actions taken by the Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. government, we have taken substantial write-downs against our corporate and consumer loan portfolios and made prudent additions to our loan loss reserve. "The very successful initial public offering of 23.1% of Travelers Property Casualty resulted in a $1.06 billion after-tax gain and roughly $5 billion in proceeds, and added $0.20 per share to our net income in the first quarter," said Weill. Highlights of the quarter included:
- Personal Lines income fell 25%, reflecting increased weather-related costs,
continued higher loss costs and a drop in net investment income, which offset
8% earned premium growth.
- Commercial Lines' income declined 6%, largely resulting from a decrease in
net investment income and favorable reserve development in the prior year.
TOTAL CORPORATE CONSUMER INVESTMENT
Addition to loan loss
provision $(475) $(240) $(235)
Credit and investment
write-downs (269) (117) (52) (100)
Redenomination charge (72) (101) 29
------- ---- ----- -----
PRE TAX IMPACT - CORE
INCOME (816) (458) (258) (100)
Restructuring charge (42) (9) (33)
--------- ------ ---------- ------
TOTAL PRE TAX INCOME
IMPACT $(858) $(467) $(291) $(100)
==============================================
In addition, the impact of the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the peso since January January: see month. 1, 2002, reduced Citigroup's equity by $512 million. - Citigroup continues to have among the strongest capital levels in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, with total equity, including trust preferred securities, increasing to $90.1 billion at March 31, 2002. Citigroup's return on common equity for the first quarter was 19.1%. The company repurchased 17.9 million shares during the quarter and redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. $419 million in trust preferred securities and $125 million in preferred stock. CONSUMER BANKING IN THE DEVELOPED MARKETS Core income of $1.64 billion for the first quarter, up 21%. Highlights included: - Personal Lines income fell 25%, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8% earned premium growth. - Commercial Lines' income declined 6%, largely resulting from a decrease in net investment income and favorable reserve development in the prior year. EMERGING MARKETS Core Income of $559 million, down 15%. Highlights included: - Personal Lines income fell 25%, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8% earned premium growth. - Commercial Lines' income declined 6%, largely resulting from a decrease in net investment income and favorable reserve development in the prior year. CORPORATE AND INVESTMENT BANKING Core income of $987 million for the first quarter, down 4%. Highlights included: - Personal Lines income fell 25%, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8% earned premium growth. - Commercial Lines' income declined 6%, largely resulting from a decrease in net investment income and favorable reserve development in the prior year. GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING Core income of $406 million for the first quarter, up 6%. Highlights included: - Personal Lines income fell 25%, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8% earned premium growth. - Commercial Lines' income declined 6%, largely resulting from a decrease in net investment income and favorable reserve development in the prior year. PROPERTY AND CASUALTY Core income of $327 million for the first quarter, down 4%. Highlights included: - Personal Lines income fell 25%, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8% earned premium growth. - Commercial Lines' income declined 6%, largely resulting from a decrease in net investment income and favorable reserve development in the prior year. INVESTMENT ACTIVITIES AND CORPORATE/OTHER Income for Citigroup's Investment Activities was $70 million in the first quarter, reflecting $100 million in pre-tax write-downs on certain investments in Argentina, offset by realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. in the private equity and insurance portfolios, as well as marked to market gains on an investment in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . Expenses for Corporate/Other were $78 million, a $118 million improvement from the first quarter of 2001, reflecting lower funding costs. Citigroup (NYSE: C), the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , and asset management. Major brand names under Citigroup's trademark red umbrella umbrella, a small canopy used as a protection against the sun in China, Egypt, and elsewhere in remote antiquity. It was often an emblem of rank. During the Middle Ages the umbrella became almost extinct in Europe; its usefulness was not rediscovered until the late include Citibank CITIBANK First National City Bank , CitiFinancial, Primerica, Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , Banamex, and Travelers. Additional information may be found at: www.citigroup.com. A financial summary follows. Additional financial, statistical and business-related information, as well as business and segment trends, is included in a Financial Supplement. Both the earnings release and the Financial Supplement are available on Citigroup's web site (http://www.citigroup.com). This document can also be obtained by calling 1-800-853-1754 within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or 732-935-2771 outside the United States.
Citigroup Segment Income
(In Millions of Dollars, except per share data)
First Quarter %
2002 2001 Change
Global Consumer
Citibanking North America $183 $149 23
Mortgage Banking 93 75 24
North America Cards 520 472 10
CitiFinancial 320 220 45
Primerica Financial Services 128 125 2
----------------
North America 1,244 1,041 20
Western Europe 155 112 38
Japan 238 205 16
----------------
Developed Markets Consumer Banking 1,637 1,358 21
Mexico 280 4 NM
Other Emerging Markets Consumer Banking 84 233 (64)
----------------
Emerging Markets Consumer Banking 364 237 54
e-Consumer (20) (24) 17
Other Consumer (29) (17) (71)
----------------
Total Global Consumer 1,952 1,554 26
-----------------
Global Corporate
Corporate Finance 789 826 (4)
Private Client 198 197 1
-----------------
Corporate and Investment Bank 987 1,023 (4)
Emerging Markets Corporate Banking
and Global Transaction Services 195 421 (54)
------------------
Total Global Corporate 1,182 1,444 (18)
-------------------
Global Investment Management
and Private Banking
Travelers Life and Annuity 200 210 (5)
The Citigroup Private Bank 112 95 18
Citigroup Asset Management 94 79 19
------------------
Total Global Investment Management
and Private Banking 406 384 6
Property and Casualty
(Excl. Portfolio Realized G/L)
Personal Lines 65 87 (25)
Commercial Lines 261 278 (6)
Interest and Other 1 (23) NM
------------------
Total Property and Casualty 327 342 (4)
-----------------
Investment Activities 70 132 (47)
Corporate/Other (78) (196) 60
----------------
Core Income 3,859 3,660 5
----------------
Restructuring-Related Items --
After Tax (A) (30) (80) 63
Gain on Sale of Stock by
Subsidiary -- After-Tax (B) 1,061 - -
Cumulative Effect of Accounting
Changes (C) (47) (42) (12)
------------------
Net Income $4,843 $3,538 37
Diluted Earnings Per Share:
Core Income $0.74 $0.71 4
Net Income $0.93 $0.69 35
Core Income Supplemental Disclosure
(In Millions of Dollars)
First Quarter %
2002 2001 Change
Citigroup Emerging Markets
(excluding Investment Activities)
Asia
Consumer $148 $148 -
Corporate 175 116 51
Asset Management & Private Banking 28 28 -
----------------
Total Asia 351 292 20
Mexico 280 4 NM
-----------------
Latin America
Consumer (75) 72 NM
Corporate (88) 161 NM
Asset Management & Private Banking 13 21 (38)
-----------------
Total Latin America (150) 254 NM
Central and Eastern Europe, Middle East
and Africa
Consumer 25 18 39
Corporate 138 165 (16)
Asset Management & Private Banking 4 4 -
----------------
Total Central and Eastern Europe, Middle East
and Africa 167 187 (11)
----------------
Other (16) (26) 38
----------------
Total Emerging Markets $632 $711 (11)
Global Wealth Management
Private Client $198 $197 1
Citigroup Asset Management 94 79 19
The Citigroup Private Bank 112 95 18
Travelers Life and Annuity 200 210 (5)
Global Consumer Investment Products 179 165 8
-------------
Total Global Wealth Management $783 $746 5
Global Cards
North America $520 $472 10
International 144 126 14
-------------
Total Global Cards $664 $598 11
Global Consumer Finance
North America $320 $220 45
International 243 188 29
--------------
Total Global Consumer Finance $563 $408 38
(A) Restructuring and merger-related items in the 2001 first
quarter related principally to severance and costs associated with the
reduction of staff in the Global Corporate businesses, and in the 2002
first quarter primarily related to severance and costs associated with
the reduction of staff in Argentina within the Latin America consumer
and corporate businesses.
(B) Travelers Property Casualty Corp. (TPC) (a wholly-owned
subsidiary of Citigroup on December 31, 2001) sold 231,000,000 shares
of class A common stock at $18.50 per share in an initial public
offering on March 27, 2002. The offering resulted in an after-tax gain
of $1.061 billion to Citigroup. Citigroup plans to make a tax-free
distribution to its stockholders of a portion of its ownership
interest in TPC by year-end 2002, such that following the
distribution, Citigroup would remain a holder of approximately 9.9% of
TPC's common equity. The distribution is subject to various regulatory
approvals as well as a private letter ruling from the Internal Revenue
Service and various other conditions. Citigroup has no obligation to
consummate the distribution by the end of 2002 or at all, whether or
not these conditions are satisfied. Income statement minority interest
will be recognized on the initial public offering portion beginning on
April 1, 2002.
(C) Accounting Changes refer to the first quarter 2001 adoption of
Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities", as amended (SFAS 133),
and the first quarter 2002 adoption of the remaining provisions of
SFAS No. 142, "Goodwill and Other Intangible Assets" (SFAS 142).
NM Not meaningful
Citigroup Segment Revenue
(In Millions of Dollars)
First Quarter %
2002 2001 Change
Global Consumer
Citibanking North America $768 $615 25
Mortgage Banking 299 239 25
North America Cards 3,438 3,012 14
CitiFinancial 1,479 1,330 11
Primerica Financial Services 512 490 4
------------------
North America 6,496 5,686 14
Western Europe 682 626 9
Japan 826 835 (1)
-------------------
Developed Markets Consumer Banking 8,004 7,147 12
--------------------
Mexico 1,085 153 NM
Other Emerging Markets Consumer Banking 1,094 1,142 (4)
---------------------
Emerging Markets Consumer Banking 2,179 1,295 68
---------------------
e-Consumer 40 47 (15)
Other Consumer (3) (5) 40
---------------------
Total Global Consumer 10,220 8,484 20
----------------------
Global Corporate
Corporate Finance 3,566 4,131 (14)
Private Client 1,479 1,551 (5)
---------------------
Corporate and Investment Bank 5,045 5,682 (11)
Emerging Markets Corporate Banking and
Global Transaction Services 1,605 1,798 (11)
----------------------
Total Global Corporate 6,650 7,480 (11)
----------------------
Global Investment Management and
Private Banking
Travelers Life and Annuity 888 1,130 (21)
The Citigroup Private Bank 423 392 8
Citigroup Asset Management 425 444 (4)
--------------------
Total Global Investment Management
and Private Banking 1,736 1,966 (12)
---------------------
Property and Casualty
(Excl. Portfolio Realized G/L)
Personal Lines 1,146 1,080 6
Commercial Lines 2,011 1,970 2
Interest and Other 11 (32) NM
---------------------
Total Travelers Property and Casualty 3,168 3,018 5
---------------------
Investment Activities 146 233 (37)
Corporate/Other 96 (134) NM
--------------------
Total Adjusted Revenue 22,016 21,047 5
===================
NM Not meaningful
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion