Adjusted net income was a 26 percent improvement over the same period last year. Citi said,
The increase reflected revenue growth and lower net credit losses, partially offset by higher legal and related expenses, a lower loan loss reserve release and a higher effective tax rate.
Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged,commented CEO Michael Corbat.
We also continued to make progress in several critical areas. We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010. We again consumed a modest amount of DTA, bringing the total utilized to about $1.3 billion for the first half of the year. We increased our already strong capital levels, reaching an estimated Basel III Tier 1 Common ratio of 10%. Generating consistent and quality earnings is a key priority and this quarter met that goal.
Allowance for loan loses fell 90 basis points to 3.4 percent of total loans. Loan loss reserve was down 22 percent to $784 million.
Citigroup’s capital levels and book value per share increased versus the prior year period. As of quarter end, book value per share was $63.02 and tangible book value per share was $53.10, 1 percent, and 2 percent increases respectively, versus the prior year period. At quarter end, Citigroup’s Basel I Tier 1 Capital Ratio was 13.3% and its Basel I Tier 1 Common Ratio was 12.2 percent. Citigroup’s estimated Basel III Tier 1 Common Ratio was 10.0 percent at the end of the second quarter 2013. Citigroup’s estimated Basel III supplementary leverage ratio for the second quarter 2013 was 4.9 percent.
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