Citigroup's Tier 1 Capital ratio was 12.5% (T1 capital stands at $125B), compared to 11.99% in the second quarter 2010. Citigroup's Tier 1 Common ratio was 10.3%, up from 9.71% in the prior quarter. - Targeting to operate in a Tier1Common ratio range of 8%-9% under Basel 3, but targeting those levels in 2012.
Citigroup's total allowance for loan losses was $43.7 billion, or 6.73% of loans. There was a loan loss release of nearly $2B during the quarter (following a $1.5B release in Q2) - primarily from the Citigroup "bad bank" entity.
Citigroup revenues were $20.7 billion, down $1.3 billion sequentially, on lower Local Consumer Lending and Securities and Banking revenues.
Citigroup net credit losses declined $303 million, or 4%, sequentially to $7.7 billion, reflecting continued improvement across most consumer portfolios.
$2.5B in mortgage repurchases YTD, $952MM in repurchase reserves.
All in, a decent quarter. Citi, due to the govt intervention and backstop, is one of the cleaner banks among their peers. Citi Holdings continues to shrink as a % of assets. Capital ratios are strong and the bank is targeting 2012 for being Basel 3 compliant.
I like Citi vs. BAC and JPM vs. Wells
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
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