Citi Reports 2% Rise In Q1 Cards Unit Revenues

Citigroup reported April 14 that Cards business unit revenue for the first quarter ended March 31 totaled $5.28 billion, up 1.3 percent from $5.21 billion a year earlier. North American branded Citi-cards revenue was flat at $2 billion, reflecting improvement in net interest spreads and growth in purchase sales that were offset by a decline in average loans Citi said.

Net credit losses on North American Citi cards were down 15 percent year over year to $587 million, while delinquency rates also improved and were at of close to historic lows, Citi said.

As of March 31, Citi’s Cards unit had 139.8 million card accounts, up 5.1 percent from 133 million a year earlier. Purchase sales for the quarter were up 1.8 percent, to $85.4 billion from $83.9 billion. Average card loans were $143.7 billion, down 0.1 percent from $143.8 billion. Loans 90 days past due were $1.92 billion, down 7.7 percent from $2.08 billion. Loans 30-89 days late were $2.02 billion, down 8.2 percent from $2.2 billion. Net credit losses for Citi’s Cards business were down 8.3 percent, to $1.44 billion from $1.57 billion.

Retail banking revenues declined 28 percent to $1.1 billion, reflecting reduced mortgage-refinancing activity and ongoing spread compression, partially offset by 4 percent growth in average deposits and 4 percent growth in average loans, Citi said. Citicorp end of period loans grew 7% from a year earlier, to $575 billion, with 12% growth in corporate loans to $279 billion and 2% growth in consumer loans to $296 billion. The growth in consumer loans reflected the acquisition of Best Buy’s U.S. credit card portfolio in the third quarter 2013, Citi said.

As a company, Citigroup reported revenues for the quarter totaling $20.1 billion, down 0.5 percent from $20.2 billion a year earlier. Net income rose 2.6 percent, to $3.9 billion from $3.8 billion

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