Citi (C) Beats Q2 Expectations of Loan and Deposit Growth, Transaction Services Performance

July 16, 2012 8:54 AM EDT
If they're not considering it now, Citigroup (NYSE: C) may want to add green to its color palete. You know, to reflect recent stock movement.

Following a 5.4 percent jump on the back peer JPMorgan's (NYSE: JPM) second-quarter numbers Friday, Citgroup is grabbing some spotlight Monday on its own results early Monday.

Revenue at the bank slipped to $18.64 billion, from $20.62 billion in the same period last year. Non-GAAP revs were $18.85 billion, versus expectations of $18.76 billion.

GAAP earnings fell about 12 percent, to $2.95 billion, or 95 cents per share. Taking out losses from CVA/DVA and Akbank, EPS was a more robust $1, versus expectations of 89 cents.

Citi's Tier 1 common ratio moved 110 basis points higher to 12.7 points while its Tier 1 capital ratio popped 80 basis points to 14.4 percent. Estimated Basel III Tier 1 common ratio was 7.9 percent.

"Our core businesses performed well in a difficult environment and are generating solid returns," commented CEO Vikram Pandit. "We had strong growth in both loans and deposits, showed resilience in our markets-facing businesses, and saw record revenues in Transaction Services. We reduced Citi Holdings to approximately 10% of our balance sheet while our capital strength and liquidity continue to be among the best in the industry."

Allowance for loan losses dropped from 5.4 percent to 4.3 percent, or $27.6 billion.

Net credit losses fell 31 percent to $3.58 billion.

Book value per share moved from $60.34 last year up to $62.61, while tangible book value is at $51.81.

Shares are indicated for a higher open Monday.

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