Citigroup Q2 adj. EPS $1.24 (net income $3.9 bln) ex-legal charges and CVA/DVA vs. $1.07 CIQ Consensus
EPS excludes the impact of a $3.8 billion charge ($3.7 billion after-tax) to settle RMBS and CDO-related claims, which consisted of $3.7 billion in legal expenses and a $55 million loan loss reserve build, each recorded in Citi Holdings. CVA/DVA (also excluded) was negative $33 million (negative $20 million after-tax) in the second quarter 2014, compared to positive $477 million ($293 million after-tax) in the prior year period. Excluding CVA/DVA in both periods, second quarter revenues of $19.4 billion declined 3% from the prior year period. GAAP EPS was $0.03 Tangible book value +1% QoQ to $56.89