Citigroup Inc.'s fourth-quarter profits fell 53%, to $677 million, as
Making its first fully consolidated quarterly report after the October
Citigroup also took $726 million in restructuring and merger charges,
"Obviously, we are not happy with the bottom-line results," co-chairman
But he added, "our consumer franchise is clearly doing very well, and we
The $667.4 billion-asset holding company said profits from consumer
Credit cards were an especially bright spot, with profits soaring 79%,
On a per-share basis, Citigroup earned 28 cents, including restructuring
Analysts saw a significant improvement from the losses Citigroup
"They are not yet hitting on all eight cylinders," said George Bicher,
For the full year 1998, profits declined 13%, to $5.8 billion, or $2.49
Mr. Reed ascribed the expense climb to year-2000 work and preparations
"In 1999 and 2000, we expect to see a significant improvement in the
Citigroup is expected to record additional merger-related charges in
Mr. Reed told reporters that the savings goals are "as good or maybe
Meanwhile, corporate banking continued to drag down profits, though they
Income from corporate banking in emerging markets rose 189%, to $220
Salomon Smith Barney profits plummeted 94%, to $13 million, largely
Income from global relationship banking fell 80%, to $30 million, as
"Global relationship banking had a lousy year and a lousy quarter," Mr.
The corporate bank continues to restructure, relegating its global fixed
In asset management, income declined 15%, to $51.4 billion, because of
In consumer banking, Citigroup got a boost abroad, particularly from
Income from Primerica Financial Services, Citigroup's unit aimed at
In the U.S. bank card business, net credit losses improved to 4.82% from
"Consumer banking continued to be the driver of earnings," said Bradley
Citigroup
New York
Dollar amounts in millions (except per share)
Fourth Quarter 4Q98 4Q97
Net income $677.0 $1,438.0
Per share 0.28 0.59
ROA 0.66% 0.79%
ROE 6.20% 14.30%
Net interest margin 4.53% 4.43%
Net interest income 4,978.0 4,466.0
Noninterest income 7,776.0 7,673.0
Noninterest expense 8,793.0 7,367.0
Loss provision 2,899.0 2,562.0
Net chargeoffs NA NA
Year to Date 1998 1997
Net income $5,807.0 $6,705.0
Per share 2.43 2.74
ROA 0.94% 0.65%
ROE 14.00% 17.50%
Net interest margin 4.43% 4.55%
Net interest income 18,744.0 17,577.0
Noninterest income 30,192.0 30,205.0
Noninterest expense 28,551.0 27,121.0
Loss provision 11,116.0 9,911.0
Net chargeoffs NA NA
Balance Sheet 12/31/98 12/31/97
Assets $667,400.0 $697,400.0
Deposits NA NA
Loans NA NA
Reserve/nonp. loans 174% 204%
Nonperf. loans/loans NA NA
Nonperf. assets/assets 0.70% 0.60%
Leverage cap. ratio 6.10% 5.64%
Tier 1 cap. ratio 8.60% 8.37%
Tier 1+2 cap. ratio 11.40% 11.07%
Total outstanding shares 2,258.0 2,279.9