Citi earnings drop 32pc in first quarter

April 18, 2011 | 21:05

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US banking giant Citigroup reported Monday first-quarter earnings plunged 32 percent from a year earlier, but stressed its fundamental capital strength had improved over the year.

Net income fell to $2.99 billion in the January-March period from $4.43 billion in the 2010 first quarter. Earnings per share fell 33 per cent to 10 cents.

But net earnings were a sizable improvement over the previous quarter's $1.31 billion, and chief executive Vikram Pandit underlined it was a sign of the bank's recovery from the US financial crash of 2008-2009.

"After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline," he said in a statement.

"Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets," he said.

In late March, Citigroup said it would resume paying a dividend for the first time since 2009, after gaining permission from federal regulators overseeing the banking system's recapitalization.

But Citi's dividend for 2010 was a bare one cent per share -- and only after a reverse stock split is implemented, which would reduce the bank's outstanding shares.

AFP

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