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This excerpt taken from the C 8-K filed Apr 17, 2009. Operating expenses were $12.1
billion, down 23%, reflecting benefits from ongoing re-engineering efforts, the
impact of foreign exchange, and a $250 million litigation reserve release. Expenses in the prior-year period included
$626 million of net charges (see detail in Schedule D). Excluding those items, as well as the
litigation release in the current quarter, expenses declined 19%.
· This excerpt taken from the C 8-K filed Oct 16, 2008. Operating expenses were $14.4
billion, up 2% from the prior-year period. Expense growth reflected $459
million in repositioning charges, a $100 million charge related to the ARS
settlement, and the impact of acquisitions. Expense growth was partially offset
by benefits from re-engineering efforts. Expenses declined for the third
consecutive quarter, due to lower incentive compensation accruals and continued
benefits from re-engineering efforts.
· This excerpt taken from the C 8-K filed Apr 18, 2008. Operating expenses grew 4%, driven by acquisitions and other
items including:
· Repositioning charges of $622 million.
· An expense benefit related to a legal vehicle restructuring in Mexico of $282 million.
· A reserve of $250 million related to facilitating the liquidation of investments in a Citi-managed fund for GWM clients.
· A write-down of $202 million of the multi-strategy hedge fund intangible asset related to Old Lane.
· A partial release of the Visa-related litigation reserve of $166 million.
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Expense growth was also driven by higher business volumes. The increase in expenses was offset partially by the absence of a $1.4 billion charge related to the structural expense review in the prior-year period.
· Credit costs of $6.0 billion consisted primarily of $3.8 billion in net credit losses and a $1.9 billion net charge to increase loan loss reserves. The $3.0 billion increase in credit costs was driven primarily by higher net credit losses, up $1.7 billion, and an incremental net charge to increase loan loss reserves of $1.3 billion.
· In U.S. consumer, higher credit costs reflected an increase in net credit losses of $1.1 billion and an incremental net charge to increase loan loss reserves of $1.2 billion. The increase in credit costs primarily reflected a weakening of leading credit indicators, including higher delinquencies on first and second mortgages, unsecured personal loans, credit cards and auto loans. Credit costs also increased due to trends in the U.S. macro-economic environment, including the housing market downturn and rising unemployment rates, as well as portfolio growth.
· In international consumer, higher credit costs reflected an increase in net credit losses of $461 million and an incremental net charge to increase loan loss reserves of $312 million. The increase in credit costs was primarily driven by Mexico cards and India consumer finance, as well as by acquisitions and portfolio growth.
· Markets & banking credit costs decreased by $5 million. Credit costs included an increase in net credit losses of $123 million, an incremental net charge of $157 million to increase loan loss reserves for specific counterparties, and the absence of a $290 million net charge to increase loan loss reserves in the prior-year period.
· This excerpt taken from the C 8-K filed Jan 15, 2008. Operating expenses increased 18%, primarily driven by the
impact of acquisitions, increased business volumes, charges related to
approximately 4,200 net headcount reductions, and the impact of foreign
exchange. Expenses reflect savings from
structural expense initiatives announced in April 2007.
· Excluding the impact of acquisitions organic expense growth was 9%. · The company opened or acquired 267 new retail bank or consumer finance branches during the quarter, including 188 internationally and 79 in the U.S. During 2007, 712 retail bank and consumer finance branches have been opened or acquired. · This excerpt taken from the C 8-K filed Oct 15, 2007. Operating expenses increased 22%, driven by increased
business volumes and acquisitions, which were partially offset by savings from
structural expense initiatives announced in April 2007.
· The company opened 96 new retail bank or consumer finance branches during the quarter, including 47 internationally and 49 in the U.S. Over the last twelve months, 820 retail bank and consumer finance branches have been opened or acquired. · Excluding the impact of acquisitions, organic expense growth was 14%. · This excerpt taken from the C 8-K filed Apr 16, 2007. Operating expenses increased 17%, including a $1.38 billion
charge related to a structural expense review completed in the quarter. Excluding the charge, compensation accruals
related to the revenue impact of adopting SFAS 157, and $648 million pre-tax in
SFAS 123(R) accruals recorded in the prior year period, expenses grew 10%,
driven by increased business volumes and investment spending.
· The company opened 99 new branches during the quarter, including 48 internationally and 51 in the U.S. · This excerpt taken from the C 10-K filed Feb 23, 2007. Operating Expenses Operating expenses increased $6.9 billion, or 15%, to $52.0 billion in 2006. The increase was primarily in compensation and benefits due to higher headcount, increased incentive compensation in CIB, and SFAS 123(R) costs, as well as investment spending. Operating expenses of $45.2 billion in 2005 declined $4.6 billion, or 9%, from 2004. The decrease was due to the absence of a reserve charge of $7.9 billion for the WorldCom and Litigation Reserve Charge and $400 million related to Private Bank Japan Exit Plan Charge recorded in 2004, offset by a $600 million release from the WorldCom and Litigation Reserve Charge and increased expenses related to higher incentive compensation in CIB and higher pension and insurance expenses. Global Consumer reported an 11% increase from 2005 to 2006. U.S. Consumer increased 5% on increased business volumes and investments in new branches. International Consumer increased 18% primarily due to branch expansions and the integration of CrediCard. International Consumer primarily drove the increase of 5% from 2004 to 2005 in Global Consumer as a result of branch expansion and repositioning charges. CIB reported a 21% rise in expenses over the prior year as a result of higher incentive compensation (due to revenue increase of 14%), SFAS 123(R) costs and the absence of the reserve release from the WorldCom and Litigation Reserve Charge in 2005. Global Wealth Management expenses increased 20% driven by costs associated with the integration of the financial consultants from Legg Mason and SFAS 123(R) costs. The change in expenses from 2004 to 2005 was flat. Alternative Investments increased 21% from the prior year, which was up 37% from 2004, due to compensation expenses. This excerpt taken from the C 10-Q filed Nov 3, 2006. Operating Expenses Total operating expenses were $11.9 billion for the 2006 third quarter, up $523 million, or 5%, from the comparable 2005 period. The increase was primarily due to investment spending, SFAS 123(R) accruals, and acquisitions. Global Consumer reported a 12% increase in total expenses from the 2005 third quarter. U.S. Consumer increased $136 million, or 4%, on increased business volumes and investments in new branches. International Consumer expenses increased $489 million, or 21%, versus the third quarter of 2005, primarily due to investment in branch expansion, the integration of Credicard, and the absence of a value added tax refund in Mexico in the prior-year period. CIB expenses decreased 6% from the 2005 third quarter, primarily due to a decline in incentive compensation accruals. Global Wealth Management expenses increased 13% compared to the prior-year quarter, primarily related to costs associated with the integration of the financial consultants from Legg Mason and SFAS 123(R) costs. Alternative Investments expenses declined 18% from the 2005 third quarter. This excerpt taken from the C 10-Q filed Aug 4, 2006. Operating Expenses Total operating expenses were $12.8 billion for the 2006 second quarter, up $1.8 billion, or 16%, from the comparable 2005 period. The increase was primarily in compensation and benefits due to higher headcount and an increase in incentive compensation in CIB, primarily Capital Markets and Banking, as well as increased costs of branch expansion and higher business volumes in Global Consumer. Global Consumer reported an 11% increase in total expenses from the 2005 second quarter. U.S. Consumer increased $193 million, or 6%, on increased business volumes and investments in new branches. International Consumer expenses increased $381 million, or 16%, versus the second quarter of 2005, primarily due to investment in branch expansion, and the integration of Credicard. CIB expenses increased 23% from the 2005 second quarter, primarily due to an increase in incentive compensation on a revenue increase of 31%. Global Wealth Management expenses increased 24% as compared to the prior year's three-month period, primarily related to costs associated with the Legg Mason integration and higher compensation costs. Alternative Investments expenses increased 25% from the 2005 second quarter. This excerpt taken from the C 10-Q filed May 5, 2006. Operating Expenses Total operating expenses were $13.4 billion for the 2006 first quarter, up $2.0 billion, or 17%, from the comparable 2005 period. The increase was primarily due to the adoption of SFAS 123(R) and an increase in incentive compensation in CIB, primarily Capital Markets and Banking. Global Consumer reported a 9% increase in total expenses from the 2005 first quarter, led by U.S. Consumer, due to increased business volumes and investments in new branches. International Consumer expenses increased $199 million versus the first quarter of 2005, primarily due to branch expansion and increased sales staff, and an increase in profit sharing in Mexico in International Retail Banking. CIB expenses increased 30% from the 2005 first quarter, primarily due to the implementation of SFAS 123(R). Global Wealth Management expenses increased 22% as compared to the prior year's three-month period, also primarily related to SFAS 123(R) implementation. Alternative Investments expenses increased 72% from the 2005 period, primarily resulting from higher employee-related expenses. This excerpt taken from the C 10-K filed Feb 24, 2006. Operating Expenses Operating expenses decreased $4.6 billion, or 9%, to $45.2 billion in 2005, and increased $12.3 billion, or 33%, from 2003 to 2004. The expense fluctuations were primarily related to the reserve charges taken in 2004 (a $7.9 billion pretax reserve for the WorldCom and Litigation Reserve Charge and a $400 million Private Bank Japan Exit Plan Charge). Expenses in 2005 reflect a $600 million release from the WorldCom and Litigation Reserve Charge. Partially offsetting the absence of these items was increased expenses related to higher incentive compensation (driven by increased revenue), and higher pension and insurance expenses. This excerpt taken from the C 10-Q filed Nov 4, 2005. Operating Expenses Total operating expenses were $11.4 billion for the 2005 third quarter, up $1.2 billion, or 12%, from the comparable 2004 period. The increase was primarily due to increased incentive compensation expense in the CIB, Smith Barney and Alternative Investments. Global Consumer reported a 2% and 6% increase in total expense from the 2004 third quarter and nine-month period, respectively, which were primarily driven by continued investment spending, new branch expenses and volume growth. CIB expenses increased 26% from the 2004 third quarter, primarily due to an increase in compensation expense driven by business mix, and decreased 37% from the nine-month period due to the absence of the $7.9 billion WorldCom and Litigation Reserve Charge in the 2004 nine-month period. Global Wealth Management expenses increased 12% and 6% as compared to the prior year's three- and nine-month periods, primarily related to increased variable compensation driven by increased revenue. Alternative Investments expenses increased 49% from the 2004 three-month period and 34% from the nine-month period of 2004. This excerpt taken from the C 8-K filed Sep 9, 2005. Operating Expenses
Operating expenses grew $12.3 billion or 33% to $49.8 billion in 2004, and increased $1.6 billion or 4% from 2002 to 2003. Expense growth during 2004 was primarily related to the $7.9 billion pretax reserve for the WorldCom and Litigation Reserve Charge taken in the second quarter of 2004 and the $400 million Private Bank Japan Exit Plan Charge. Other increased expenses included investments made relating to the acquisitions of Sears, KorAm, WMF and Principal Residential Mortgage during the year, increased incentive compensation due to increased revenue, increased marketing and advertising expenses and higher pension and insurance expenses. The increase in 2003 included investments made relating to acquisitions during the year, increased spending on sales force, marketing and advertising and new business initiatives to support organic growth, higher pension and insurance costs, the cost of expensing options and higher deferred acquisition costs.
This excerpt taken from the C 10-Q filed Aug 4, 2005. Operating Expenses Total operating expenses were $11.0 billion for the 2005 second quarter, down $7.2 billion, or 40%, from the comparable 2004 period. The decrease was due to the absence of the $7.9 billion WorldCom and Litigation Reserve Charge in the 2004 second quarter. Partially offsetting the decrease in the three-month period were increases in compensation and benefits due to the acquisition of KorAm and support of growth in the consumer and corporate banks. Global Consumer reported a 6% and 8% increase from the 2004 second quarter and six-month period, respectively, which were primarily driven by higher volumes, the impact of foreign currency translation and continued investment expenses in branch expansion. CIB expenses decreased 70% from the 2004 second quarter and 50% from the six-month period due to the absence of the $7.9 billion WorldCom and Litigation Reserve Charge in the 2004 second quarter. Global Wealth Management expenses increased 4% and 3% as compared to the prior year's three-and six-month periods. Alternative Investments expenses increased 29% from 2004 three-month period and 26% from the six-month period of 2004. This excerpt taken from the C 8-K filed Jun 7, 2005. Operating Expenses
Operating expenses grew $12.6 billion or 33% to $51.0 billion in 2004, and increased $1.5 billion or 4% from 2002 to 2003. Expense growth during 2004 was primarily related to the $7.9 billion pretax reserve for the WorldCom and Litigation Reserve Charge taken in the second quarter of 2004 and the $400 million Private Bank Japan Exit Plan Charge. Other increased expenses included investments made relating to the acquisitions of Sears, KorAm, WMF and Principal Residential Mortgage during the year, increased incentive compensation due to increased revenue, increased marketing and advertising expenses and higher pension and insurance expenses. The increase in 2003 included investments made relating to acquisitions during the year, increased spending on sales force, marketing and advertising and new business initiatives to support organic growth, higher pension and insurance costs, the cost of expensing options and higher deferred acquisition costs.
This excerpt taken from the C 10-Q filed May 4, 2005. Operating Expenses Total operating expenses were $11.7 billion for the 2005 first quarter, up $1.2 billion, or 12%, from the comparable 2004 period. The increase includes a $435 million charge for repositioning costs, along with increased costs related to acquisitions and higher investment spending. Global Consumer expenses were up 10% from the 2004 first quarter, driven by acquisitions as well as increased marketing and advertising costs and repositioning costs. CIB expenses increased 21% from the 2004 first quarter primarily reflecting repositioning costs and increases in non-compensation expenses. Global Wealth Management increased expenses 2% as compared to the prior year's first quarter and Asset Management noted a 1% increase. Alternative Investments expenses increased 21% from 2004 levels. This excerpt taken from the C 10-K filed Feb 28, 2005. Operating Expenses Operating expenses grew $12.8 billion or 33% to $52.0 billion in 2004, and increased $1.9 billion or 5% from 2002 to 2003. Expense growth during 2004 was primarily related to the $7.9 billion pretax reserve for the WorldCom and Litigation Reserve Charge taken in the second quarter of 2004 and the $400 million Private Bank Japan Exit Plan Charge. Other increased expenses included investments made relating to the acquisitions of Sears, KorAm, WMF and Principal Residential Mortgage during the year, increased incentive compensation due to increased revenue, increased marketing and advertising expenses and higher pension and insurance expenses. The increase in 2003 included investments made relating to acquisitions during the year, increased spending on sales force, marketing and advertising and new business initiatives to support organic growth, higher pension and insurance costs, the cost of expensing options and higher deferred acquisition costs. | EXCERPTS ON THIS PAGE: |
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