Citigroup (C)

·                  Consumer revenue growth was driven by an increase in average loans and investment AUMs, up 18% and 16%, respectively, and a $186 million pre-tax gain on Visa Inc. shares.  Net income declined as revenue growth was offset by higher credit costs, the absence of a gain on the sale of Avantel in the prior-year period, and lower APB 23 tax benefits.  The increase in credit costs was due primarily to portfolio growth and an increase in past due accounts.  During the past 12 months, 137 new retail bank and consumer finance branches were opened.

·                  Markets & banking revenues and net income decreased as record revenue and net income in transaction services were offset by lower results in securities and banking.  Transaction services revenues increased 14%, driven by growth in net interest revenue, fees, and commissions.  In securities and banking, revenues declined 34%, driven by lower revenues in equity and fixed income markets, partially due to volatility in foreign exchange rates and a flat yield curve.

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—           Income growth in the consumer business reflects growth in customer deposits and loans, as well as improved spreads in retail banking.

—           Corporate income declined due to lower sales and trading results, which were only partially offset by revenue and income growth in corporate banking and transaction services.  Favorable credit conditions led to lower credit costs.

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