Citi reports Q1 profits

by Richard Kilner

Story link: Citi reports Q1 profits

Citigroup Inc. has reported a net profit of $1.6bn during the first quarter of 2009.

A robust performance by the Institutional Clients Group formed the foundation of $24.8bn of revenue, which was somewhat eroded by net write-downs.

The bank made a loss per share of $0.18, and $7.3bn in net credit losses and a $2.7bn net loan loss reserve build.

In January of last year a private offering was issued of $12.5 billion convertible preferred stock, without which earnings per share would have been in the black rather than the red.

On a comparison with Q1 2008 operating expenses have been reduced by $3.7bn or 23%, and headcount from Q4 2008 to the most recent quarter has fallen by 13,000.

The bank’s deposit base has remained quite solid during the quarter, and stands at $763bn.

Vikram Pandit, CEO of Citi, has expressed his pleasure at the firm’s performance which was its best since Q2 2007.

Like many banks, Citi was hit hard by the financial and economic troubles caused by the subprime mortgage crisis.

To enhance its performance the firm was realigned into Citicorp and Citi Holdings, and in early April, Mike Corbat was appointed as CEO of Citi Holdings.