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Citigroup 10k

In: Business and Management

Submitted By mjanes1
Words 2696
Pages 11
Accounting 70150
Financial Institution Financial Analysis, Part I
75 points

Name: Signature 1. (12) Refer to the Citigroup 2009 10-K report. Explain the primary reasons for the Net Income differences between 2008, 2009 and 2010. Use the following format: 2009 2010 2011
Citigroup’ net income (loss) $billions ($1.606) 10.602 $11.067 Change $12.208 $.465
2011 vs. 2010:
Citigroup and Consolidated Subsidiaries
Overall, the largest change between the two years on the Income Statement is the 50.86% reduction (26,042 to 12,796) in the provisions for credit losses and benefits and claims. Net income for Citigroup increased 4.65% (10,602 to 11,067) while revenues decreased 10% (from 86,601 to 78,353) and operating expenses increased 7.51% (47,375 to 50,933). Additionally, the income from discontinued operations increased from (68) to 112.
Citicorp Analysis:
While total Citicorp income from continuing operations only decreased 2%, the Global Consumer Banking increased 33%, the Securities and Banking decreased 25%, and the Transaction Services decreased 7%.
Citi Holdings
Total Citi Holdings increased 38% in the period, as Brokerage and Asset Management decreased 27%, Local Consumer Lending increased 43% and Special Asset Pool decreased 49%. Thus, Citi Holdings income from continuing operations increased only 1%, but the Discontinued Operations, Net Income attributable to NCI decreased 47%, causing Citigroup net income to increase by 4% in 2011 (compared to 2010).
Overall Decrease 2011 vs. 2010
While the global consumer banking division increased income 33% (6,196 from 4,661), the securities and banking and transaction services divisions in North America decreased from 2,465 to 1,011 (59%) and 529 to 447 (16%). Overall, all North American divisions of Citigroup decreased the most significantly. The securities and Banking...

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