Citigroup revenues in the fourth quarter 2010 were $18.4bn and included negative CVA of $1.1bn. Excluding CVA, revenues of $19.5bn were down 6% from the prior quarter, principally driven by lower securities and banking revenues and lower gains on sale of AFS securities in Corporate/Other.
Net interest revenues were $12.8bn, down 3% sequentially, largely due to declining loan balances in Citi Holdings and a $255m pre-tax charge to increase reserves related to customer refunds in Japan Consumer Finance.
Citigroup expenses increased $951m, or 8%, sequentially to $12.5bn.
Citigroup total provisions for credit losses and for benefits and claims of $4.8bn declined $1.1bn, or 18%, sequentially to the lowest level since the second quarter of 2007.
Citigroup net income for full year 2010 was $10.6bn, or $0.35 per diluted share, compared to a net loss of $1.6bn, or $0.80 per share, in the full year 2009.
Citigroup CEO Vikram Pandit said 2010 was a year full of milestones and was critical for the turnaround of this institution. The company’s goal was to achieve consistent profitability and he is very pleased that with the company’s fourth consecutive profitable quarter.
"Our core businesses in Citicorp, with its deep roots in both the developed and emerging markets, performed well throughout the year while we made targeted investments in talent and technology. At the same time, we continued to wind down Citi Holdings in an economically rational manner, reducing assets by $128bn in 2010 alone.
"Holdings’ total assets have declined by more than half from their peak in 2008 to $359bn and now stand at less than 20% of our balance sheet," Pandit said.
