Citigroup reports net income for the first quarter 2023 of USD4.6 billion
Citigroup has reported net income for the first quarter 2023 of USD4.6 billion, or USD2.19 per diluted share, on revenues of USD21.4 billion. This compares to net income of USD4.3 billion, or USD2.02 per diluted share, on revenues of USD19.2 billion for the first quarter 2022.
First quarter results included divestiture-related impacts of USD953 million in earnings before taxes (USD648 million after-tax), primarily driven by a gain on the sale of the India consumer business, recorded in Legacy Franchises. Excluding these divestiture-related impacts, earnings per share was USD1.86(5). This compares to divestiture-related impacts in the first quarter 2022 of USD(677) million in earnings before taxes (USD(588) million after-tax), primarily driven by a goodwill impairment related to Asia Consumer Banking, also recorded in Legacy Franchises.
Revenues increased 12% from the prior-year period and 6% excluding the divestiture-related impacts, as growth in net interest income was partially offset by lower non-interest revenues. The higher net interest income was driven by the impact of higher interest rates across businesses, including Services and Markets in Institutional Clients Group (ICG), as well as strong growth in average loans in US Personal Banking within Personal Banking and Wealth Management (PBWM). The lower non-interest revenues reflected declines in Investment Banking and Markets in ICG and lower investment product revenues in Global Wealth Management in PBWM.
Net income of USD4.6 billion increased 7% from the prior-year period, and decreased 19% excluding the divestiture-related impacts. The increase in net income was primarily driven by the higher revenue, partially offset by higher expenses and higher cost of credit.
Earnings per share of USD2.19 increased 8% from the prior-year period, reflecting the higher net income and an approximate 1% decline in average diluted shares outstanding.
Citi CEO Jane Fraser said, “Citi delivered strong operating performance, showing good revenue growth and expense discipline despite the tumultuous environment for banks. Our robust and well-managed balance sheet was a source of strength for our clients and we continue making progress in executing our strategy focused on our five core interconnected businesses while simplifying and transforming the firm.
“TTS continued to perform extremely well, growing non-interest revenue on new mandates and strong cross-border activity. Markets saw the third best quarter in the last decade in Fixed Income. Banking activity picked up from the end of 2022. Our two cards businesses are showing momentum. While it is not an ideal environment for wealth management, the drivers of this business continue to be very positive, and we announced that Andy Sieg will be joining us as its CEO later this year.
“We closed the sale of two consumer franchises, which contributed to our healthy pace of capital generation. We ended the quarter with a CET1 ratio of 13.4%. We are committed to increasing the amount of excess capital we return over time as well as delivering with excellence for our clients and shareholders,” Ms. Fraser concluded.
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