Citigroup beats by $0.12, reports revs in-line
Reports Q1 (Mar) earnings of $1.52 per share, $0.12 better than the Capital IQ Consensus Estimate of $1.40; revenues fell 2.3% year/year to $19.74 bln vs the $19.82 bln consensus.
- C utilized $1.2 billion of deferred tax assets, helping increase Common Equity Tier 1 Capital ratio to 11.0% and Supplementary Leverage Ratio to 6.4%.
- Citigroup revenues were $19.7 billion in the first quarter 2015, down 2% from the prior year period. Excluding CVA/DVA, revenues of $19.8 billion decreased 2% from the prior year period, driven by a 1% decrease in Citicorp revenues and a 7% decrease in Citi Holdings revenues.
- Citigroup's net income increased 21% to $4.8 billion in the first quarter 2015 from $3.9 billion in the prior year period.
- Citigroup's operating expenses were $10.9 billion in the first quarter 2015, 10% lower than the $12.1 billion in the prior year period, driven by ongoing efficiency savings and lower legal and related expenses and repositioning costs. Operating expenses in the first quarter 2015 included legal and related expenses of $387 million, compared to $945 million in the prior year period.
- Citigroup's book value per share was $66.79 and its tangible book value per share was $57.66. Citigroup's Common Equity Tier 1 Capital ratio was 11.0%, up from 10.5% in the prior year period. Citigroup's Supplementary Leverage Ratio for the first quarter 2015 was 6.4%, up from 5.7% in the prior year period.
- Citicorp revenues of $17.9 billion in the first quarter 2015 decreased 2% from the prior year period. Citicorp net income was $4.6 billion, 9% higher than the prior year period.
- GCB revenues of $8.7 billion decreased 2% from the prior year period, with 4% growth in North America offset by a 10% decline in international revenues.
- North America GCB revenues rose 4% to $5.0 billion versus the prior year period, primarily reflecting higher revenues in retail banking. North America GCB net income was $1.1 billion, up 12% versus the first quarter 2014. The reserve release in the first quarter 2015 was $99 million, $170 million lower than in the first quarter 2014, as credit continued to stabilize.
- International GCB revenues decreased 10% versus the first quarter 2014 to $3.7 billion. In constant dollars, revenues were approximately unchanged versus the prior year period.
- ICG revenues fell 1% from the prior year period to $9.0 billion. Banking revenues of $4.2 billion increased 4% from the prior year period (excluding gain / (loss) on loan hedges in each period), reflecting growth in Investment Banking, Private Bank and Corporate Lending.
- Investment Banking revenues increased 14% versus the prior year period, driven by a 70% increase in advisory revenues to $298 million and a 16% increase in debt underwriting revenues to $669 million, partially offset by a 23% decrease in equity underwriting revenues to $231 million.
- Fixed Income Markets revenues of $3.5 billion in the first quarter 2015 decreased 11% from the prior year period, primarily driven by lower spread product revenues, partially offset by growth in rates and currencies.
- Equity Markets revenues of $873 million decreased 1% versus the prior year period, driven by lower revenues in cash equities partially offset by growth in prime finance. Securities Services revenues of $543 million grew 12% versus the prior year period, reflecting increased activity and higher client balances.