The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Bank Results Season: Citi proves its worth to itself (Q1 2012)

Citigroup results of Jan to March 2012 relied on reduced Citi Holdings assets of $134 bln in the run off portfolio and the $4.74 bln revenues n Fixed Income about a 20% higher than even Q1 2011 and more than double its trading revenues in Q4 2011. CVA adjustments were more than a $1,288  bln even as the bank realised $20.2 bln revenues ex one off items i.e. CVA and one off profits/losses(minority gains).

Citigroup

Citigroup (Photo credit: Wikipedia)

However , healthily enough retail banking revenues crossed $10 bln, Net Interest Income was almost $12 bln at $11.95 bln and Non Interest revenuies of $7.4 bln included only $630 mln revenues from Insurance  premium. Provisions of $3 bln, Credit Losses of $3.95 bln and a release of provisions of $1.1 bln make up the rest of the balance sheet turning away most from any further denomination of value to Citi bank even as it remains tracing close to its book value even with Comp expenses of $6.385 bln or 33% of revenues and more than 50% of operating expenses for the quarter

Tier I Common was an abysmal 7.2% by Basel 3 RWA while the Bank rethinksa new Capital Plan which does not violate the 5% condition for Tier I Common for the Fed to approve for dividends and buybacks

Meanwhile Goldman Sachs has announced another 1.2% sale or 4% of H shares of ICBC, China’s biggest bank at H$5.05 for its quarterly results announcement just minutes away. Citi’s $2.93 bln profits of 95 cents EPS represent a low 6.5% RoE on banks earnings

End of Period loans are $504 bln for the bank in a balance sheet of $1.95 T

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This entry was posted on April 17, 2012 by in Amitonomics, Banking, US and tagged , , , , , , .

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