Citigroup (C)

·                 International Retail Banking

·                  Revenues grew 21%, driven by increased average deposits and loans, up 23% and 28%, respectively, including the impact of acquisitions.  Loan balances grew at a double-digit pace in EMEA, Mexico and Asia, and more than doubled in Latin America.  Investment assets under management grew 14%.

·                  Expenses grew 12%, reflecting increased business volumes and acquisitions, offset by a $221 million benefit related to a legal vehicle restructuring in Mexico.

·                  Credit costs increased $85 million, driven by acquisitions and portfolio growth.

·                  Net income increased 35%, on higher business volumes and a benefit to expenses, partially offset by higher credit costs and lower tax benefits.

·                  Revenues increased 31%, driven by increased deposits and loans, up 21% and 27%, respectively, and increased investment sales, up 24%.  Results also reflected a $313 million pre-tax gain on the sale of an ownership interest in Nikko Cordial’s Simplex Investment Advisors, and a $59 million pre-tax gain on Visa, Inc. shares.  Average loan balances grew at a double-digit pace in EMEA, Asia, Latin America, and Mexico.  Results include the impact of recent acquisitions.

·                  Expenses grew 22%, reflecting increased business volumes and acquisitions.  During the quarter, 152 new branches were opened or acquired.

·                  Higher credit costs reflected increased net credit losses primarily due to the impact of recent acquisitions. Excluding the impact of acquisitions, the net credit loss ratio was approximately even with the prior year period.

·                  Net income grew 17%, driven by the Simplex and Visa gains, and higher business volumes.  The net income growth rate also reflected the absence of a gain on sale of Avantel in Mexico recorded in the prior-year period, as well as lower APB 23 tax benefits in Mexico.

—           Revenue growth was driven by growth in deposits and loans of 17% and 43%, respectively, and increased investment product sales, reflecting both organic growth and the acquisition of KorAm.

—           Expenses include repositioning costs of $45 million after-tax, primarily in EMEA, as well as continued investment spending, which led to 15 new branch openings during the quarter.

—           The NCL ratio, excluding commercial business, improved by 28 basis points to 1.20%.

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