Citigroup Reports Better Than Expected First Quarter

Citigroup surprised Wall Street on Friday by ending their five-quarter losing streak and reporting a better-than-expected loss per share.

The New York-based bank posted a net income of $1.6 billion for the first quarter of 2009. The company reported an $.18 per-share loss due to costs relating to preferred share dividends. Analysts had expected a loss of $.32 per share.

Revenues of $24.8 billion, driven by strong results in the Institutional Clients Group, were partially offset by net write downs.

"Our results this quarter reflect the strength of Citi's franchise and we are pleased with our performance. With revenues of nearly $25 billion and net income of $1.6 billion, we had our best overall quarter since the second quarter of 2007," said Vikram Pandit, Chief Executive Officer of Citi.

"The clear message from this quarter is that our clients remain engaged. Citi is a unique franchise in global financial services. We offer more services in more places around the globe than anyone, which our clients have long recognized. Despite the challenges we have faced this past year, they remain closely engaged with us."

Pandit said that Citigroup continues to take steps to further strengthen the company by lowering risk and reducing exposure to the problem assets that caused many of their losses, lowering expenses, improving the company's efficiency, and increasing their capital base.

Pandit also said that the company continues to extend consumer credit and help support the U.S. housing market. He said that since October 2008, the company was able to keep 9 out of 10 troubled Citi mortgage borrowers in their homes and has worked with over 820,000 credit card holders to help them manage their debt through a variety of programs.


Sources:
Citigroup
Bloomberg