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These excerpts taken from the C 10-Q filed Aug 3, 2007. Non-Interest Revenue increased 3% primarily due to higher loan and
deposit volumes, 6% growth in Card purchase sales, and a higher level of
securitized Card receivables. Growth was
also driven by higher gains on sale of mortgage loans and net servicing
revenues, and the impact of the acquisition of ABN AMRO Mortgage Group in the
first quarter of 2007. Second quarter of
2006 results also included a $132 million pretax gain from the sale of upstate
New York branches.
Operating expenses increased primarily due to acquisitions and increased investment spending, including 24 new branch openings during the quarter (15 in CitiFinancial and 9 in Citibank). Higher volume-related expenses primarily reflected 18% growth in loan originations in Consumer Lending. Non-Interest Revenue increased 8% primarily due to higher loan and
deposit volumes, and 6% growth in Card purchase sales. Non-interest revenues also reflected a $161
million net pretax gain on the sale of MasterCard shares, the impact of the
acquisition of ABN AMRO Mortgage Group in the first quarter of 2007, and higher
gains on sale of mortgage loan and net servicing revenues. Second quarter of 2006 results also included
a $132 million pretax gain from the sale of upstate New York branches.
Operating expenses increased primarily due to acquisitions, increased investment spending related to the 75 new branch openings during the first half of 2007 (45 in CitiFinancial and 30 in Citibank), and costs associated with Citibank Direct. The increase in 2007 was also favorably affected by the absence of the charge related to the initial adoption of SFAS 123(R) in the first quarter of 2006. Higher volume-related expenses primarily reflected 20% growth in loan originations in Consumer Lending businesses. Non-Interest Revenue increased 13%, primarily due to higher Card purchase
sales, up 31%, and increased investment product sales, up 46%. By region, the growth was led by Japan—Cards and Retail Banking, Latin
America, Asia, and EMEA.
The positive impact of foreign currency
translation also contributed to increases in revenues. The 2006 second quarter included a gain on
the MasterCard IPO of $55 million.
Excluding the impact of Japan Consumer Finance, revenues increased 24%. Operating expenses increased, reflecting the integration of the CrediCard portfolio, the acquisitions of Grupo Financiero Uno, Grupo Cuscatlan, and Egg, and an increase in ownership in Nikko. Expense growth also reflects volume growth across the regions (excluding Japan Consumer Finance), continued investment spending, including 136 branches opened or acquired, higher customer activity, and the impact of foreign currency translation. 16
Non-Interest Revenue increased 16%, primarily due to higher purchase
sales, up 28% in Cards, increased investment product sales, up 40% in Retail
Banking, and growth across all regions. The positive impact of foreign currency
translation and a year-over-year gain on the MasterCard IPO of $53 million also
contributed to the increase in revenues.
Operating expenses increased, reflecting the integration of the CrediCard portfolio and the acquisitions of Grupo Financiero Uno, Grupo Cuscatlan, and Egg, and increased ownership in Nikko along with volume growth across the products and regions, continued investment spending driven by 269 branches opened or acquired, higher customer activity, and the impact of foreign currency translation. The increase in YTD 2007 expenses was also favorably affected by the absence of the charge related to the initial adoption of FAS 123(R) in the first quarter of 2006. | EXCERPTS ON THIS PAGE:
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