This excerpt taken from the C 8-K filed Jan 15, 2008.
Revenues grew 6% driven by increased average deposits and managed loans, both up 10%. Expenses increased 13% primarily due to a $292 million pre-tax charge related to Citis pro-rata share of certain Visa, Inc.-related litigation exposure. Excluding the litigation charge, expenses increased 5%. Credit costs increased substantially, driven by a weakening of leading credit indicators, including increased delinquencies on 1st and 2nd mortgages, unsecured personal loans, credit cards and auto loans. Credit costs increased due to trends in the U.S. macro-economic environment, including the housing market downturn, and portfolio growth. Higher credit costs and expenses drove a decline in net income.