Citigroup reported net income of $4.3 billion, or 49 cents a share. That blows away an expected loss of something like 33 cents a share.
Total revenue came in at $30 billion, a huge leap from $12.4 billion a year ago. That was pumped up by the sale of Smith Barney.
Once you exclude the Smith Barney gain of $6.7 billion, Citigroup had an operating loss of about 27 cents a share. That’s still better than the 33-cent loss analyst estimate.
Citi’s loan portfolio continues to suffer. It has posted an additional $3.9 billion to loan loss reserves, bringing the total allowance for loan losses to 5.6% of total loans.
Citigroup is operating under a secret agreement with the government, and has plans to dilute current shareholders by 76 per cent. The bank will convert $33 billion of preferred shares and $25 billion of the government’s bailout stake into common stock. After the transaction the government will own 34% of Citi.
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