Earnings of $.15 per share were way ahead of breakeven estimates.
Revenue of just over $25 billion was almost $5 billion ahead of estimates.
Shares are up over 3%, and perhaps that will staunch some of Friday’s bleeding in finance.
From the announcement:
New York – Citigroup Inc. today reported first quarter 2010 net income of $4.4 billion or $0.15 per diluted share, and revenues of $25.4 billion.
Revenues grew $7.5 billion and net income increased $5.8 billion, excluding the $10.1 billion pre-tax loss from the TARP repayment and exit of the loss-sharing agreement with the U.S. government in the fourth quarter of 2009. Provisions for credit losses and for benefits and claims2 declined $2.4 billion sequentially to $8.6 billion, the lowest level since the first quarter of 2008. Expenses were down 6% sequentially to $11.5 billion.
“Citi today is fundamentally a very different company from what it was only two years ago,” said Vikram Pandit, Citi’s Chief Executive Officer. “With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.
“We are proud of our first quarter results but remain cautious about the environment, given the uncertain economic recovery and high unemployment in the U.S. Realistically, we do not expect our performance to follow an invariable trend-line upward. Longer-term, however, the prospects for Citi are clear and bright. And our first quarter of this year has given us the best glimpse yet of the potential of ‘America’s global bank’.
“None of this would have been possible without the magnificent work of Citi’s people. They produced strong results by focusing on our clients’ needs, creating a much more efficient company, maintaining strict risk management discipline, and reducing our portfolio of non-core assets and its losses.
“Our performance was aided by stability in the capital markets and improvement in the global business climate. But the perseverance, hard work, and sacrifice of my colleagues throughout Citi have been the relentless and constant force driving our momentum.
“All of us at Citi recognise that we would not be where we are without the assistance of American taxpayers. We are gratified that Citi has been able to repay their TARP investment in our company, with a substantial return, as well as create a significant increase in the value of their equity in Citi.
“Still, that is not enough. We owe taxpayers a huge debt of gratitude for assisting us at a critical time. We are determined to repay this debt by continuing to build a strong company and contribute to America’s economic recovery,” Mr. Pandit added.
Wanna know why the company did so well?
First of all, credit losses decline, and secondly, the global interest rate environment was wildly helpful.
- Fixed Income Markets revenues were $5.4 billion ($5.1 billion excluding CVA), compared to $1.7 billion ($2.9 billion excluding CVA) in the prior quarter. The 77% increase in revenues excluding CVA was mainly driven by strong performance across interest rates and currencies, and credit and securitized products.
More to come.
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