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Citigroup Q2 Earnings Summary And Presentation

Here are the key highlights from the just released Citigroup Q2 earnings:

  • Net Income of $0.95 or $1.00 excluding CVA and one time loss; Exp $0.86
  • Citigroup Net Income of $2.9 Billion; $3.1 Billion Excluding CVA/DVA and the Loss on Akbank;
  • Citigroup Revenues of $18.6 Billion; $18.8 Billion Excluding $219 Million of CVA/DVA and the $424 Million Loss on Akbank; Exp. $19.01 Billion
  • Where the bottom line beat came from: Loan Loss Reserve Release of $984 Million in Second Quarter, or 35% of pretax net income.
  • Complete freeze in capital markets:
    • Fixed Income markets revenue plummets from $4.7B in Q1 to $2.8B in Q2 (and down 4% Y/Y from $2.9 billion)
    • Equity Markets revenue slides 39% sequentially from $776MM to $550MM, down 29% Y/Y from $776MM. It's a zombie zone out there
  • Total Securities and Banking revenues slide 22%, yet Expenses decline just 4%
  • And just like JPM, Americans can't wait to hand over their deposits to Citi: Citigroup Quarter-End Deposits of $914 Billion, 6% Above Prior Year Period
  • This compares to total Loans of $655 billion or a $259 billion mismatch; we know that this surplus is what JPM uses as funding for its Treasury/CIO group. Does Citi also use the excess deposits to fund its internal hedge fund?

Visual summary:

Complete loan loss and release information: Citi has "generated" $16.2 billion in Net Income in the past 2 years.

Why expenses rose in Q2:

Full summary financial presentation.