CITI REPORTS FIRST QUARTER REVENUES OF $24.8 BILLIONNET INCOME OF $1.6 BILLION, LOSS PER SHARE OF $0.18POSITIVE EPS EXCLUDING THE $0.24 IMPACT OF RESETTING THE CONVERSION PRICEOF CERTAIN PREFERRED SHARESNET INCOME PRIMARILY DRIVEN BY IMPROVED PERFORMANCE IN INSTITUTIONALCLIENTS GROUP AND CONTINUED EXPENSE REDUCTIONS
New York, NY, April 17, 2009 — Citigroup Inc. (NYSE: C) today reported net income for the first quarter of 2009 of$1.6 billion and a loss per share of $0.18, based on 5,385 million shares outstanding. Revenues of $24.8 billionwere driven by strong results in the Institutional Clients Group, partially offset by net write-downs. Results alsoinclude $7.3 billion in net credit losses and a $2.7 billion net loan loss reserve build.The $0.18 loss per share reflected the reset in January 2009 of the conversion price of the $12.5 billion convertiblepreferred stock issued in a private offering in January 2008. This did not have an impact on net income butresulted in a reduction to income available to common shareholders of $1.3 billion or $0.24 per share. Without thisreduction, earnings per share were positive. The loss per share also reflected preferred stock dividends, which didnot impact net income but reduced income available to common shareholders by $1.3 billion.
Total revenues of $24.8 billion were up 99% compared to the first quarter of 2008, with sequential improvementacross all regions.
Net interest margin of 3.30% increased 50 and 8 basis points versus the first and fourth quarter 2008,respectively.
Operating expenses were down $3.7 billion, or 23%, since the first quarter 2008.
Headcount reduced by approximately 13,000 since the fourth quarter 2008 to 309,000 and approximately65,000 since peak levels.
Tier 1 capital ratio was approximately 11.8% versus 7.7% in the first quarter 2008.
Deposit base remained relatively stable at $763 billion compared to the fourth quarter 2008, despite thechallenging environment. Deposits declined 8% since the first quarter 2008, due to the sale of the Germanretail banking operations and the impact of foreign exchange. U.S. deposits increased $8 billion sequentiallyand $28 billion year-over-year.
Closed sale of remaining Redecard position for an after-tax gain of $704 million.
“Our results this quarter reflect the strength of Citi’s franchise and we are pleased with our performance. Withrevenues of nearly $25 billion and net income of $1.6 billion, we had our best overall quarter since the secondquarter of 2007,” said Vikram Pandit, Chief Executive Officer of Citi.“The clear message from this quarter is that our clients remain engaged. Citi is a unique franchise in globalfinancial services. We offer more services in more places around the globe than anyone, which our clients havelong recognized. Despite the challenges we have faced this past year, they remain closely engaged with us.“As strong as our franchise is, we have been taking steps to strengthen it further. We have lowered risk anddramatically reduced the problem legacy assets that have caused many of our losses. We have meaningfullylowered expenses and headcount and improved efficiency. We have also increased our capital base.“Additionally, we continued to extend significant amounts of credit to U.S. consumers and continued to focus onsupporting the U.S. housing market. Since October 2008, we successfully worked with borrowers, with combinedmortgages totaling approximately $13.5 billion, to avoid potential foreclosure and were able to keep more than 9 out