Citigroup Inc. (C) Earnings Review

Posted by on Jul 19, 2010 | No comment

Citigroup Inc. (NYSE: C), last Friday, reported its second-quarter financial reports. The New York City-based banking giant reported second-quarter net income of $2.7 billion, or $0.09 per diluted share. The bank reported second-quarter revenue of $22.1 billion. This is the second consecutive profitable quarter for Citigroup.

Citigroup’s revenue dropped $3.4 billion, while its net income fell $1.7 billion, on a sequential basis. Citigroup’s provision for credit losses and for benefits and claims dropped $2 billion on a sequential basis to $6.7 billion. This is then lowest the company has reported since the third quarter of 2007.

Commenting on the second-quarter financial results, Vikram Pandit, CEO of Citigroup, said that he is please with the bank’s solid operating results for the second consecutive quarter. Pandit said that the bank is focused on its strategy of serving clients with its strong presence in developed and emerging markets.

Pandi said that the company saw growth internationally, specifically in Transaction Services and Regional Consumer Banking in Latin America and Asia. He also said that the bank continues to focus on reducing size of Citi Holdings, which now makes up less than a quarter of Citigroup’s balance sheet.

Last week, Citigroup announced that it reached a definitive merger agreement to transfer the management and certain proprietary interests in its fund of funds, mezzanine funds, feeder funds and con-investment businesses to StepStone Group LLC and Lexington Partners. The move is part of Citigroup’s strategy to exit non-core businesses.

Citigroup’s Regional Consumer Banking division reported revenue of $8 billion, down 1% on a sequential basis. Second-quarter revenue at the bank’s Securities and Banking department stood at $6 billion, down 26% on sequential basis. Within the Securities and Banking division, the Fixed Income Markets revenue were $3.7 billion, Equity Markets revenue were $652 million, Investment Banking revenues were $674 million, Private Bank revenues were $512 million and Lending revenues were $522 million.

Citigroup’s Transaction Services division reported second-quarter revenue of $2.5 billion, up 3% on a sequential basis. The division saw growth across all international regions. Second-quarter revenue at Citi Holdings, meanwhile, stood at $4.9 billion.

Shares of Citigroup were up in today’s trading. The stock reached a high of $4.04 in mid-day trading. At last check, it was up 2.44% to $3.99, with volume at 447.93 million in mid-day trading. The stock has a 52-week range of $2.56-$5.43 and currently trades below its 50-day and 200-day moving averages.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Copyright Beacon Equity @ 2012