Citigroup (C) Forecast Was Right, It Has A Bad Quarter

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Citigroup’s (C) quarter was as bad as advertised. The bank reported net income for the 2007 third quarter of $2.38 billion, or $0.47 per share, a decline of 57% from the prior-year quarter. Results include a $729 million pre-tax gain on the sale of Redecard shares. Return on equity was 7.4%. On October 1, 2007,

Citi Segment Results

       
Third Quarter Revenues  

 

Third Quarter Net Income  

 

(In Millions of Dollars, except EPS)   2007     2006    

%
Change

  2007     2006    

%
Change

Global Consumer $ 14,683   $ 12,834 14 % $ 1,783   $ 3,195 (44 )%
Markets & Banking 4,603 6,067 (24 ) 446 1,721 (74 )
Global Wealth Management 3,509 2,486 41 489 399 23
Alternative Investments 125 334 (63 ) (67 ) 117 NM
Corporate/Other   (257 )     (299 )   14       (273 )     (129 )   NM  
Results from Continuing Operations $ 22,663 $ 21,422 6 % $ 2,378 $ 5,303 (55 )%
Discontinued Operations         202     NM  
Total Citi                   $ 2,378     $ 5,505     (57 )%
Earnings per Share from Continuing Operations $ 0.47 $ 1.06 (56 )%
Earnings per Share                   $ 0.47     $ 1.10     (57 )%
International results (1)   $ 12,256     $ 9,460     30 %   $ 2,035     $ 2,276     (11 )%

(1) International results are fully reflected in the Total Citi results above, and exclude Alternative Investments, Corporate/Other and Discontinued Operations.

 

NM Not meaningful.

Douglas A. McIntyre