The provision for loan losses was $8.2bn, down 36% from the prior year and 10% from the prior quarter. Total corporate net credit losses declined sequentially to $1.1bn in the fourth quarter, from $1.5bn, reflecting continued stabilization in corporate credit quality and decline in the size of the portfolio.
Full year operating expenses declined 31% to $47.8bn. Excluding goodwill impairments and restructuring/repositioning charges recorded, operating expenses were down 15%.
Managed revenues increased 49% to $91.1bn, up from $61.2bn reflecting, in part, the absence of significant marks taken in 2008.
Vikram Pandit, CEO, said: “We greatly improved Citi’s capital strength, reduced the size and scope of the company and refocused our business strategy to take advantage of our unmatched global network. We created Citi Holdings to rationalize non-strategic businesses, totally overhauled risk management, cut costs by over $13bn annually, reduced headcount by 100,000, and reduced assets by $500bn from peak levels.
“We also completed the repayment of $20bn invested in the company by the US government through the Troubled Asset Relief Program (TARP) and exited the loss-sharing agreement with the government.”
John Gerspach, CFO, said: “While the environment continues to be challenging, we have a strong capital base and client franchise. Although we remain cautious and continue to monitor the future impacts of our current loss mitigation efforts, we continue to see indications that credit may be stabilizing or improving, particularly in Asia and Latin America.”
