Citi attributed the decrease in net income to higher cost of credit, higher expenses, and the lower revenues, along with the impact of the divestiture of Consumer Business in Asia
Citibank branch on Michigan Avenue in Chicago. (Credit: TonyTheTiger at English Wikipedia)
Citigroup has reported a net income of $4.3bn, or $2.02 per diluted share, for the first quarter ended 31 March 2022, a 46% decline compared to $7.9bn, or $3.62 per diluted share, for the same period the prior year.
The bank has reported net revenues of $19.2bn for the first quarter of 2022 (Q1 2022), a 2% decrease compared to $19.7bn for the corresponding quarter in 2021.
The company’s total operating expenses for the reported period were $13.2bn, a 15% increase compared to $11.4bn for the same quarter in the previous year.
Citigroup attributed the decrease in net income to higher cost of credit, higher expenses, and lower revenues, along with the impact of the divestiture of Consumer Business in Asia.
Also, its high net interest income in its Institutional Clients Group (ICG) and Personal Banking and Wealth Management (PBWM) was offset by lower non-interest revenue across Banking and Global Wealth Management, and Legacy Franchises.
Citi CEO Jane Fraser said: “While the geopolitical and macro environment has become more volatile, we are executing the strategy we announced at our recent Investor Day. Given our emphasis on Services, I am particularly pleased with our performance in Treasury and Trade Solutions.
“Fee growth, trade loans and cross-border transactions, buoyed by higher rates, led to year over year revenue growth of 18%. Securities Services also performed well, with revenue up 6%.
“In Markets, our traders navigated the environment quite well, aided by our mix, with strong gains in FX and commodities. However, the current macro backdrop impacted Investment Banking as we saw a contraction in capital market activity. This remains a key area of investment for us.”
Citi’s Institutional Clients Group (ICG) business has reported a net income of $2.6bn for Q1 2022, a 51% decline compared to $5.4bn for the same period last year.
Its Personal Banking and Wealth Management (PBWM) unit has reported a net income of $1.9bn for Q1 2022, a 23% decline compared to $2.4bn for the same quarter in 2021.
The bank’s Legacy Franchises booked a loss of $383m for Q1 2022, compared to a loss of $616m for the same period in the prior year.
Citi’s Corporate and Other business reported a net income of $189 for Q1 2022, compared to a loss of $194m for the corresponding quarter in 2021.