Chillin' out till it needs to be funded
Citi analysts have been posting estimates based on its 58% Loans portfolio from the Emerging markets, the bank having grown 22% in the retail portfolio in the first nine months of the year in LatAm and 12% in Asia (FT) Overall Citi loans business grew to $465.4 bln (Citicorp) by 14%,
The management fields questions in an hour from now. Operating expenses for the year dropped to $12.9 bln on $14.1 bln Citicorp revenues in the latest quarter.
Profits grew to $1.2 bln even as Citi holdings topline impact and loan losses declined dramatically to $ 3 bln and $2.6 bln (including releases of $1.5 bln) giving Citi another $0.38 cents per share. Citicorp revenues were a $65.1 bln.
The Citi topline declined to $78 bln for the full year with one third topline lost from the bad bank($6.4 bln), i.e. Citi Holdings while full year Net Income was a respectable $10.6 bln i.e. a margin of 13.6% on the business.
Citi holdings will continue to carry revenues in excess of $1-2 bln in 2012 and 2013 predicating Topline loss at the bank, even as the bank claims a book value of $60.78 and Tangible BVPS of more than $42. $8.4 bln was released from Loan loss reserves for the year without which expenses of $59 bln include a $20 bln in credit losses and a diluted EPS of $11.3 bln for a $3.69 per share EPS for the year, behind JP Morgan’s $4.48 on Friday
The bank announced that it has moved the $45 bln retail partner cards book fromt he remaining $270 bln Citi assets this year, leaving the $220 bln remiaining to whittle away at a 25% rate..
EM growth has not caught up with the bank despite its share of business but profitability is much higher than US and Europe. US forms more than 38% of revenues for the bank.
Retail Loans 90+ rate dropped below 1% to 0.98% while the 30-89 past due rate was a 1.17% for a total of $5.3 bln on $246.6 bln portfolio of retail loans. NA still accounts for $115 bln of the retail portfolio, $40 bln only from the retail bank. Asia accounts for one third the retail profit and continues to grow in double digit with almost half the retail loans portfolio, largest being Korea. These retail
loan books do not include the less than $ 200 bln holdings in the Citi Holdings portfolio
Excluding FDIC deposits, the retail bank still maintains a global NIM ( on average assets ) of nearly 2.99% in the Fourth quarter
Comp expenses are $25.6 bln for the full year 2011. Securities and Banking revenues for the qiuarter and the year at $3.2 bln and $21 bln manage to stay ahead of Transaction services at $2.2 bln and $10.5 bln but the growth in 4Q has been available only from stable revenues in Transaction services business, with Securities and Banking revenues falling by half from the 4th Quarter
4Q and Full Year NA retail banking income has grown four fold to $2.6 bln, Asia down 10% at $1.9 bln while EMEA managed to grow 10% in Investment Banking income by 11% while North Amerca fell off a 60% cliff. Transaction services were almost uniformly down across geographies
Non Interest Fee Revenue wrote in 49 bln of the $32 bln Citicorp consumer banking revenues for a full year profit of $6.2 bln in the division. Retail Banking and Cards split the revenues evenly, Cards still costing $6.5 bln in credit losses against $1.5 bln in other retail.