Citi Earns $101m, HAMP Mods Slow Losses
CitiGroup (C) earned $101m during Q309, up from a loss of $2.8bn during Q308. Citi’s revenue was $20.4bn, down from the Q209 revenue of $30bn, which included an $11.1bn gain from the Smith Barney transaction. Q309 earnings included $8bn in net credit losses and $80m in net loan loss reserve build. Payment of preferred stock dividends of $288m resulted in a per share loss of $0.27. The firm said it completed more than 24,000 mortgage modifications and at quarter’s end, had more than 63,000 loans in the trial modification stage of the Making Home Affordable Modification Program (HAMP). Net credit losses declined $386m, about 5%, primarily due to higher volume of trial loan modifications under HAMP. However, since HAMP modifications are not considered complete until the end of the trial period, CitiGroup experienced a $2bn increase in 90 or more days delinquent residential mortgages. “This was an important quarter for us. The completion of the exchange offers and the significant actions taken during the last few quarters have created a strong foundation,” said Vikram Pandit, Citigroup CEO. “We continue to execute steadily against our plan, and sustainable profitability remains our primary goal in the near term. While consumer credit trends are improving in international markets, the U.S. consumer credit environment remains challenging,” he added. Write to Austin Kilgore.