Citigroup Reports Third Quarter Net Income of $7.14 Billion.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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) --Third Quarter 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 $1.38 --Income from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $4.99 Billion --EPS from Continuing Operations of $0.97 --Revenues Increased 15% to $21.50 Billion --Hurricane Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area Costs of $222 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. , or $0.04 Per Share --Share Repurchases of $5.5 Billion Citigroup Inc. (NYSE:C) today reported net income for the third quarter of 2005 of $7.14 billion, or $1.38 per share. Return on common equity was 25.4%. Net income includes a $2.12 billion after-tax gain on the sale of life insurance and annuities, which closed in the third quarter. Income from continuing operations was $4.99 billion, or $0.97 per share.
Citigroup Segment Results
(In Millions of Dollars)
Third Quarter Third Quarter
Revenues Net Income
------------------ ----------------
% %
2005 2004 Change 2005 2004 Change
----------------------------------------------------------------------
Global Consumer $12,321 $11,870 4% $2,723 $3,119 (13)%
Corporate and
Investment
Banking 6,434 4,780 35 1,797 1,452 24
Global Wealth
Management 2,174 2,010 8 306 334 (8)
Alternative
Investments 720 297 NM 339 117 NM
Corporate/Other (151) (219) 31 (177) 4 NM
---------------------------------------------------
Results from
Continuing
Operations $21,498 $18,738 15 $4,988 $5,026 (1)
---------------------------------------------------
Discontinued
Operations (1) 2,155 282 NM
---------------------------------------------------
Total Citigroup $21,498 $18,738 15% $7,143 $5,308 35%
----------------------------------------------------------------------
(1) Income from Discontinued Operations includes the results of
substantially all of Asset Management, which is subject to a pending
sale transaction, and a $2.12 billion after-tax gain on the sale of
life insurance and annuities, which closed in the third quarter.
"The strength of our business franchises continued to generate strong underlying financial results, despite a number of unusual charges this quarter," said Charles Prince For other persons named Charles Prince, see Charles Prince (disambiguation). Charles O. "Chuck" Prince, III, born January_13, 1950, is the chief executive officer (CEO) and chairman of Citigroup. , Chief Executive Officer of Citigroup. "Our results reflect excellent performance in our corporate and capital markets driven businesses. Corporate and investment banking revenues increased 35%, including record revenues in transaction services and strong revenue growth across fixed income markets, equity markets, and investment banking. In 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. , revenues grew 13%. We also continued to generate robust customer volume growth in our international consumer franchise, where revenues increased 10%, as our investments are allowing us to reach more customers than ever before. Strength in these businesses helped offset sluggish revenue growth in our U.S. consumer franchise, where increased customer volumes were offset by continued spread compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. and the impact of an increase in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most filings due to new legislation. The strength of our diversified diversified (di·verˑ·s platform also allowed us to absorb absorb To offset sell orders or a new security offering with buy orders. costs associated with Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , as well as a year-over-year swing in credit costs of
more than $1.6 billion," said Prince.
"Since the terrible devastation wrought by Hurricane Katrina, we have worked hard to provide substantial assistance to our affected customers. The Citigroup Foundation and our employees have pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. or donated do·nate v. do·nat·ed, do·nat·ing, do·nates v.tr. To present as a gift to a fund or cause; contribute. v.intr. To make a contribution to a fund or cause. more than $11.2 million to various relief organizations. We have waived loan fees and interest, totaling $25 million during the quarter, or restructured payments for our customers living in the affected areas. We have also recorded a $222 million after-tax charge this quarter, primarily to reflect the credit implications of the economic dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. and hardship our customers are experiencing," said Prince. "We continue to allocate To reserve a resource such as memory or disk. See memory allocation. capital to our high growth and high return opportunities. During the quarter we opened 108 new branches and added 66 automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. loan machines. We worked to strengthen our product capability locally and globally by investing in technology and people to better serve our growing customer base. We also increased the pace at which we repurchased our stock, acquiring over 124 million shares during the quarter at a cost of $5.5 billion," said Prince. THIRD QUARTER SUMMARY - CONTINUING OPERATIONS --Franchise strength in corporate and capital markets driven businesses. Capital markets and banking achieved market share gains across several products, resulting in a #1 global rank in equity underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , debt underwriting, completed M&A, and syndicated loans Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. during the third quarter. In transaction services, an expanded coverage effort and continued deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound of client relationships led to a 15% increase in assets under custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. and 21% growth in liability balances. In Smith Barney, increased client activity during the normally slow summer months resulted in 10% growth in transactional revenues. Private equity gains drove continued strong performance in Alternative Investments. --International consumer franchise expansion. During the quarter, continued investment spending led to the opening of 69 new retail banking and consumer finance branches and 66 automated loan machines. Over the past 12 months, 308 new retail banking and consumer finance branches were opened or acquired and 235 automated loan machines were added. An expanded distribution network, as well as new product and marketing programs, drove strong volume and revenue growth during the quarter. Cards average receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed grew 15% and retail banking loans and investment product sales increased 8% and 33%, respectively. Outside of Japan, consumer finance loans rose 15%, including 61% growth in Asia. Net interest margins contracted modestly versus the third quarter of 2004 due to rising short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. and the competitive pricing environment. Income decline reflects a $490 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. loan write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. policies in EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. retail banking and EMEA consumer finance with the global write-off policy. --North America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. consumer volume growth and spread compression. Increased customer participation in rewards programs and new deposit and loan initiatives contributed to 10% growth in card purchase sales and higher retail banking deposits and loans. In consumer finance, 4% receivables growth was driven by an increase in personal and auto loans. Slower growth in consumer finance receivables reflected an ongoing decision to avoid offering aggressively priced teaser rate Teaser rate A low initial interest rate on an adjustable-rate mortgage to entice borrowers, that is later eliminated and replaced by a market-level rate. and interest-only mortgage products to this customer segment. The benefits of volume growth during the quarter were offset by continued spread compression. Net interest margins improved from the second quarter of 2005 due to pricing actions. --Operating Expenses. Expenses increased 12%. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. three percentage points of the increase was due to increased investment spending, while the remainder reflected organic business growth and foreign exchange. --Summary of Highlighted Items. During the quarter, the following charges and benefits were recorded in continuing operations:
After-Tax Impact on
(In Millions of Dollars) Third Quarter Net Income
--------------------------------------------- ------------------------
Standardization of loan write-off policy in
EMEA retail banking and EMEA consumer
finance with the global write-off policy $(332)
Hurricane Katrina costs (222)
Increased bankruptcies in NA Cards in advance
of law change (124)
Corporate loan loss reserve increase (94)
Homeland Investment Act tax benefit 185
Mexico Value Added Tax refund 117
Copelco litigation settlement 108
Global Crossing and other insurance
recoveries 54
----------------------------------------------------------------------
GLOBAL CONSUMER GROUP
Third Quarter Third Quarter
Revenues Net Income
------------------ ----------------
(In Millions of % %
Dollars) 2005 2004 Change 2005 2004 Change
----------------------------------------------------------------------
N. America Cards $3,746 $3,815 (2)% $1,003 $1,067 (6)%
International
Cards 857 787 9 179 200 (11)
---------------------------------------------------
Total Cards $4,603 $4,602 0% $1,182 $1,267 (7)%
N. America
Consumer Finance $1,771 $1,753 1% $352 $494 (29)%
International
Consumer Finance 903 878 3 143 149 (4)
---------------------------------------------------
Total Consumer
Finance $2,674 $2,631 2% $495 $643 (23)%
N. America Retail
Banking $3,335 $3,138 6% $982 $873 12%
International
Retail Banking 1,735 1,523 14 129 398 (68)
---------------------------------------------------
Total Retail
Banking $5,070 $4,661 9% $1,111 $1,271 (13)%
-------------------------- ------------------------
Other (26) (24) (8) (65) (62) (5)
---------------------------------------------------
Global Consumer $12,321 $11,870 4% $2,723 $3,119 (13)%
----------------------------------------------------------------------
North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Cards --Revenues and income declined, as a 10% increase in purchase sales was offset by net interest margin compression and higher payment rates. --Mexico card revenues increased 55% and net income doubled, as target market expansion led to 64% growth in managed receivables. --Net credit margin decreased 1%, as continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. credit conditions were offset by the impact of an increase in bankruptcy filings due to new legislation, which added approximately $200 million pre-tax to credit costs. --Income decline also reflects a $110 million pre-tax charge related to Hurricane Katrina and the absence of a $160 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. Results in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. include a $41 million tax benefit from provisions of the Homeland A homeland (rel. country of origin and native land) is the concept of the territory (cultural geography) to which an ethnic group holds a long history and a deep cultural association with —the country in which a particular national identity began. Investment Act and a $27 million after-tax benefit due to a Value Added Tax value added tax n (BRIT) → impuesto sobre el valor añadido or agregado (LAM) value added tax n (Brit refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies in Mexico. International Cards --Revenue growth reflects an 11% increase in purchase sales and 15% growth in average loans, with strong organic loan growth in Asia, EMEA and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . --The NCL NCL Norwegian Cruise Line NCL New Caledonia (ISO Country code) NCL National Consumers League (Washington, DC) NCL Neuronal Ceroid Lipofuscinosis (adult type) rate declined 130 basis points to 2.79%, as international credit trends continued to improve. --Income decline reflects the absence of a $42 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004 and expense growth related to higher business volumes and investment spending. North America Consumer Finance --Revenues increased 1% from the prior year period, as a 4% increase in average loans was offset by a 17 basis point decline in net interest margin. Spread compression was primarily driven by lower yields on the portfolio. --The net credit loss rate improved 23 basis points to 2.23%. --In Mexico, new branch openings totaled 22 during the quarter, and 81 over the last 12 months. --Income decline primarily reflects $180 million pre-tax of credit costs related to Hurricane Katrina and the absence of a $45 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. International Consumer Finance --In Japan, income growth was primarily driven by lower expenses and continued credit improvement. During the quarter, 66 new automated loan machines were added. --Outside of Japan, 21% revenue growth was partially offset by increased investment spending, which led to the opening of 58 new branches during the quarter, including 43 in Asia. Over the last 12 months, 211 new branches were opened, including 120 in Asia. --Average loans increased 3%, reflecting a decline in Japan of 7% and growth outside of Japan of 15%. --The NCL ratio improved by 51 basis points to 6.01%. Credit costs include a $14 million pre-tax charge to standardize loan write-off policies in EMEA with the global write-off policy. --Income decline also reflects the absence of a $24 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. North America Retail Banking --Results reflect growth in average customer deposits and loans of 7% and 20%, respectively, which was partially offset by continuing spread compression and the absence of previously sold portfolios in the commercial business. Loan growth reflected an increase in prime home finance average loans of 31%, as well as strong growth in retail distribution, commercial business core loans, and Mexico. --Mexico retail banking revenue and income increased significantly as deposits grew 11% and loans increased 26%. --Credit conditions remained favorable. --Commercial Business results include a $185 million pre-tax benefit due to settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related to the purchase of Copelco in 2000. --Income growth includes the impact of a $60 million pre-tax charge related to Hurricane Katrina and the absence of a $164 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. Results in Mexico include a $66 million tax benefit from provisions of the Homeland Investment Act and a $79 million after-tax benefit due to a Value Added Tax refund in Mexico. International Retail Banking --Revenue growth was driven by increased deposits and loans, up 7% and 8%, respectively, due to improved deposit product spreads and higher sales of investment products. --Expenses include continued investment spending, with 11 new branch openings during the quarter. New branch openings or acquisitions totaled 97 over the last 12 months. --Credit costs include a $476 million pre-tax charge to standardize loan write-off policies in EMEA with the global write-off policy.
CORPORATE AND INVESTMENT BANKING
Third Quarter Third Quarter
Revenues Net Income
---------------- ----------------
(In Millions of % %
Dollars) 2005 2004 Change 2005 2004 Change
----------------------------------------------------------------------
Capital Markets
and Banking $5,187 $3,733 39% $1,424 $1,159 23%
Transaction Services 1,246 1,045 19 327 286 14
Other 1 2 NM 46(1) 7 NM
-------------------------------------------------
Corporate and
Investment Banking $6,434 $4,780 35% $1,797 $1,452 24%
----------------------------------------------------------------------
(1) Includes Global Crossing and other insurance recoveries of $90
million pre-tax ($54 million after-tax).
Capital Markets and Banking --Fixed income markets revenues increased 53%, driven by strong performance in interest rate products, foreign exchange, and commodities. --Equity markets revenues increased 78%, driven by improved performance and growth in cash trading, alternative execution, and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. products. --Investment banking revenues increased 22%, driven by a 63% increase in advisory fees, which reflected strong growth in completed M&A transactions, and 45% growth in equity underwriting. --Credit costs increased $375 million, reflecting a $143 million pre-tax charge to increase loan loss reserves and the absence of a $202 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. The increase in loan loss reserves primarily reflects growth in unfunded commitments to corporate clients and weakness in auto credits. --Results also include a $70 million tax benefit from provisions of the Homeland Investment Act. Transaction Services --Record revenues and net income were driven by higher customer volumes, reflecting increased liability balances held on behalf of customers, up 21%, assets under custody, up 15%, and the positive impact of rising short-term interest rates. --Expenses increased 14%, reflecting the impact of new product introductions and higher business volumes. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: grew from 32% to 35%. --Credit costs increased $76 million and reflect a $7 million pre-tax charge to increase loan loss reserves, and the absence of a $48 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. --Results also include a $26 million tax benefit from provisions of the Homeland Investment Act.
GLOBAL WEALTH MANAGEMENT
Third Quarter Third Quarter
Revenues Net Income
---------------- ----------------
(In Millions of % %
Dollars) 2005 2004 Change 2005 2004 Change
----------------------------------------------------------------------
Smith Barney $1,728 $1,528 13% $227 $198 15%
Private Bank 446 482 (7) 79 136 (42)
--------------------------------------------------
Global Wealth
Management $2,174 $2,010 8% $306 $334 (8)%
----------------------------------------------------------------------
Smith Barney --Revenue growth reflects a 15% increase in fee-based revenues and 10% growth in transactional revenues. --Assets under fee-based management increased 17% to $258 billion. Net flows were $5 billion for the quarter. --The pre-tax margin of 21% declined from the prior quarter, reflecting increased legal expenses. The Private Bank --Results reflect wind-down of the Japan business, which recorded a net loss of $29 million. Japan revenue and net income declined $46 million and $32 million, respectively, from the third quarter of 2004. --Excluding Japan, revenues increased 2%, as growth in customer volumes was offset by net interest margin compression. --Excluding the net loss in Japan, income declined 19%, as revenue growth was offset by investment spending on front office sales and support. --Client business volumes rose 3% to $218 billion, led by 15% growth in the U.S. and 10% growth in EMEA. Assets under fee-based management grew 6%.
ALTERNATIVE INVESTMENTS
Third Quarter Third Quarter
Revenues Net Income
---------------- ----------------
(In Millions of % %
Dollars) 2005 2004 Change 2005 2004 Change
----------------------------------------------------------------------
Alternative
Investments $720 $297 NM $339 $117 NM
----------------------------------------------------------------------
Alternative Investments --Income of $339 million primarily reflects private equity gains and earnings on proprietary hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" investments. CORPORATE/OTHER Corporate/Other results declined to a loss of $177 million, which reflected the absence of a $147 million tax benefit recorded in the third quarter of 2004, and marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. improved treasury results as lower funding requirements offset the impact of higher short-term interest rates.
DISCONTINUED OPERATIONS
Third Quarter
Net Income
----------------
%
(In Millions of Dollars) 2005 2004 Change
---------------------------------------------------------------------
Life Insurance & Annuities $2,089 $245 NM
Asset Management 66 37 78
------------------------
Discontinued Operations $2,155 $282 NM
---------------------------------------------------------------------
INTERNATIONAL OPERATIONS (1)
Third Quarter
Net Income
---------------
%
(In Millions of Dollars) 2005 2004 Change
----------------------------------------------------------------------
Global Consumer $511 $249 NM
Corporate and Investment Banking 177 198 (11)
Global Wealth Management 12 13 (8)
------------------------
Mexico $700 $460 52%
Global Consumer $(154) $154 NM
Corporate and Investment Banking 358 124 NM
Global Wealth Management 8 4 NM
------------------------
Europe, Middle East and Africa (EMEA) $212 $282 (25)%
Global Consumer $169 $164 3%
Corporate and Investment Banking 58 91 (36)
Global Wealth Management (29) 3 NM
------------------------
Japan $198 $258 (23)%
Global Consumer $375 $332 13%
Corporate and Investment Banking 382 309 24
Global Wealth Management 26 33 (21)
------------------------
Asia (excluding Japan) $783 $674 16%
Global Consumer $61 $97 (37)%
Corporate and Investment Banking 185 229 (19)
Global Wealth Management 1 9 (89)
------------------------
Latin America $247 $335 (26)%
------------------------
Total International $2,140 $2,009 7%
----------------------------------------------------------------------
(1) International results for the quarter are fully reflected in
the product disclosures.
Mexico --Consumer income growth reflects increased retail banking customer deposits and loans, up 11% and 26%, respectively, and 64% growth in cards average receivables. Consumer results also reflect a $106 million after-tax benefit due to a Value Added Tax refund resulting from a favorable Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Supreme Court ruling, and a $107 million tax benefit from provisions of the Homeland Investment Act. --Corporate and Investment Banking income declined as increased corporate customer activity and improved treasury results were offset by increased credit costs. Credit costs increased $156 million, due to the absence of a $150 million pre-tax unallocated loan loss reserve release recorded in the third quarter of 2004. Corporate credit conditions remained stable. Results also include a $47 million tax benefit from provisions of the Homeland Investment Act. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Middle East and Africa
--Consumer results reflect 11% growth in revenues, driven by increased customer receivables in cards and consumer finance, up 15% and 8%, respectively. Retail banking deposits and loans grew 12% and 1%, respectively. Results also reflect a $490 million pre-tax charge to standardize loan write-off policies in retail banking and consumer finance with the global write-off policy. --Corporate and Investment Banking results reflect strong revenue growth, driven by increased customer activity across equity and fixed income markets and investment banking, and record revenues in transaction services. Credit costs include a $44 million pre-tax charge to increase loan loss reserves, primarily reflecting portfolio growth, longer maturities in unfunded commitments, and slightly lower credit quality. Results also include a $22 million tax benefit from provisions of the Homeland Investment Act. Japan --Consumer income increased primarily due to reduced expenses and lower credit costs in consumer finance. Retail Banking income declined as revenue growth was offset by increased costs related to implementation of expanded control and compliance procedures. --Corporate and Investment Banking income declined as improved results in equity markets, due to higher customer activity, were offset by a decline in fixed income market revenues. --Wealth Management results reflect the continued wind-down of the private bank operations. Asia --Consumer income continued to grow strongly, as growth in customer volumes led to continued double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth across cards, consumer finance and retail banking. Cards and consumer finance average receivables grew 14% and 61%, respectively. Retail banking customer deposits and loans grew 10% and 11%, respectively. During the quarter, 46 new branches were opened, consisting of 43 consumer finance and 3 retail banking branches. --Corporate and Investment Banking achieved record revenues driven by double-digit growth across fixed income markets, equity markets, investment banking, and transaction services. Strong performance was achieved in distressed debt distressed debt Debt with low junk status and a market price substantially below par value, often pennies on the dollar. Investors sometimes buy distressed debt on the possibility that management can renegotiate loan agreements and keep the issuer out of , interest rate and currency trading, cash equities, and equity derivatives In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain risks associated with the . Credit conditions remained favorable. Results included a $26 million tax benefit from provisions of the Homeland Investment Act. Latin America --Consumer results reflect double-digit revenue growth in cards, consumer finance, and retail banking, driven by increased receivables balances. Revenue growth was offset by increased investment spending on branches and higher credit costs due to the absence of a $71 million pre-tax unallocated loan loss reserve release recorded in the third quarter 2004. Credit conditions remained favorable. During the quarter, 14 new branches were opened, consisting of 10 consumer finance and 4 retail banking branches. --Corporate and Investment Banking results reflect double-digit revenue growth in fixed income markets and transaction services, partially offset by lower lending revenues and higher credit costs. Credit costs increased due to the absence of an $83 million pre-tax unallocated loan loss reserve release in the third quarter 2004. Credit conditions remained favorable. Citigroup (NYSE: C), the leading global 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. company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , and wealth 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 and Banamex. Additional information may be found at www.citigroup.com 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 website at www.citigroup.com. Certain statements in this document are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission. |
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