The global consumer banking (GCB) division of Citigroup has reported a net income of $1.23bn for the first quarter of 2016, down 28.3% from $1.71bn a year earlier.
The fall in profit was mainly due to lower revenues, higher operating expenses and a higher cost of credit.
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The unit’s total revenues were $7.77bn, a fall of 6.4% from $8.30bn in the prior year. Operating expenses increased 2.4% to $4.41bn from $4.30bn in the year-ago quarter, the bank said in its earnings statement.
North America GCB net income dropped 25.4% year-on-year to $860m, while the unit’s revenues decreased 3.6% to $4.87bn from $5.06bn a year ago.
Overall, the banking group posted a net income of $3.5bn for the first quarter, down $26.6% compared to $4.7bn a year ago. Revenues fell 11% year-on-year to $17.55bn from $19.73bn.
Citigroup CEO Michael Corbat said: "While our market-sensitive products clearly suffered from weak investor sentiment during the quarter, we continued to make progress in several key areas. We grew loans and deposits in our core businesses, reduced our expenses while absorbing a significant repositioning charge, utilized additional Deferred Tax Assets, and generated capital in excess of what we returned to our shareholders.
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By GlobalData"Our Common Equity Tier 1 Capital ratio now stands at 12.3% and our Tangible Book Value per share increased to $62.58."
