Citigroup reported net income for the second quarter 2016 of $4.0 billion, or $1.24 per diluted share, on revenues of $17.5 billion. This compared to net income of $4.8 billion, or $1.51 per diluted share, on revenues of $19.5 billion for the second quarter 2015.
Michael Corbat, Chief Executive Officer of Citi, said, “These results demonstrate our ability to generate solid earnings in a challenging and volatile environment, again highlighting the resilience of our institution. Nearly all of our net income came from our core businesses and we continued to reduce non-core assets in Citi Holdings. We significantly improved our efficiency ratio, return on assets and return on tangible common equity from the first quarter. We also grew loans in both our consumer and institutional businesses, reduced expenses, and utilized additional deferred tax assets, bringing the total utilized to $10 billion over the last four years. This utilization fuels our ability to generate regulatory capital and, with the Fed’s non-objection to our capital plan, I am pleased that we will significantly increase the amount of capital returned to our shareholders over the next year.”
Citigroup revenues of $17.5 billion in the second quarter 2016 decreased 8%. Excluding the impact of foreign exchange translation, Citigroup revenues decreased 6%, driven by a 56% decrease in Citi Holdings, while Citicorp revenues were unchanged versus the prior year period.
Citigroup’s net income decreased 14% to $4.0 billion in the second quarter 2016, driven by the lower revenues and a higher effective tax rate, partially offset by lower cost of credit and lower operating expenses. Citigroup’s effective tax rate was 30% in the current quarter, an increase from 29% in the second quarter 2015.
($ in millions, except per share amounts)
|Net Credit Losses||1,616||1,724||1,920||-6||%||-16||%|
|Credit Reserve Build / (Release)(b)||(256||)||233||(453||)||NM||43||%|
|Provision for Benefits and Claims||49||88||181||-44||%||-73||%|
|Total Cost of Credit||$1,409||$2,045||$1,648||-31||%||-15||%|
|Income from Continuing Operations Before Taxes||$5,770||$4,987||$6,894||16||%||-16||%|
|Provision for Income Taxes||1,723||1,479||2,036||16||%||-15||%|
|Income from Continuing Operations||$4,047||$3,508||$4,858||15||%||-17||%|
|Net Income (Loss) from Discontinued Operations||(23||)||(2||)||6||NM||NM|
|Citigroup Net Income||$3,998||$3,501||$4,846||14||%||-17||%|
|Adjusted Net Income(a)||$3,998||$3,501||$4,650||14||%||-14||%|