Citigroup Inc. is reporting total revenues from Citi-branded cards of $4.16 billion for the third quarter ended Sept. 30, up 76.3% from $2.36 billion during the same three months last year. Citi card income from continuing operations totaled $454 million, up considerably from $6 million a year earlier.
Sales on Citi-branded credit cards globally during the period totaled $65.5 billion, unchanged from the same three-month period last year, Citigroup noted in its Oct. 18 earnings report. Accounts at the end of September totaled 51.1 million, down 6.4% from 54.6 million a year earlier.
“Branded card revenues remained stable quarter over quarter, as the continued impact of CARD Act was largely offset by lower write-offs of accrued interest as credit continued to improve,” John Gerspach, Citi chief financial officer, told analysts during a conference call. “We currently estimate the CARD Act will have a net pretax impact on Citi-branded cards this year at the lower end of our previously disclosed range of $400 million to $600 million.”
Managed net interest revenue totaled $3.18 trillion, down 3.6% from $3.3 trillion. Average managed loans for the quarter were $109.5 billion, down 4.3% from $114.4 billion. Managed net credit losses totaled $2.4 trillion, or 8.69% of average managed loans, down 17.8% from $2.92 trillion or 10.14% of average managed loans. Managed net credit margin was $481 billion, or 2.51% of average managed loans, up 22.4% from $393 billion, 1.89% of average managed loans.
Managed loans 90 days or more past due totaled $2.59 trillion, or 2.33% of end-of-period managed loans, down 19.1% from $3.2 trillion, or 2.74% of end-of-period managed loans. Managed loans 30 to 89 days past due totaled $2.54 trillion, or 2.29% of end-of-period managed loans, down 24% from $3.34 trillion, or 2.86% of end-of-period managed loans.
Retail partner cards revenue totaled $2.06 billion, up 43.1% from $1.44 billion.
North America
In North America, cards revenue totaled $2.37 trillion, up 247% from $684 billion. The region reported a $42 billion loss for the quarter; it generated a $13 billion profit a year earlier.
Sales on Citi-branded credit cards totaled $39 billion, down 7.8% from $42.3 billion.
Managed net interest revenue totaled $1.93 trillion, down 6.8% from $2.07 trillion. Accounts at the end of the period totaled 21.2 million, down 13.5% from 24.5 million.
Average managed loans for the quarter were $76 billion, down 8% from $82.6 billion. The region’s managed net credit losses totaled $1.88 trillion, or 9.82% of average managed loans, down 9.6% from $2.08 trillion or 9.98% of average managed loans. The region’s managed net credit margin was $481 billion, or 2.51% of average managed loans, up 22.4% from $393 billion, or 1.89% of average managed loans.
Managed loans 90 days or more past due totaled $1.81 trillion, or 2.36% of end-of-period managed loans, down 17.4% from $2.19 trillion, or 2.59% of end-of-period managed loans. Managed loans 30 to 89 days past due totaled $1.69 trillion, or 2.2% of end-of-period managed loans, down 23.5% from $2.21 trillion, or 2.61% of end-of-period managed loans.
Europe, Middle East and Asia
In Europe, Middle East and Asia region, cards revenue totaled $163 billion, down 8.4% from $178 billion. The region reported a $40 billion profit for the quarter; information from the year-ago period was not reported.
Sales on Citi-branded credit cards totaled $2.3 billion, up 4.5% from $2.2 billion.
Managed net interest revenue totaled $118 billion, down 4.1% from $123 billion. Accounts at the end of the period totaled 2.5 million, down 7.4% from 2.7 million.
Average loans for the quarter were $2.8 billion, down 6.7% from $3 billion.
Net credit losses totaled $31 billion, or 4.39% of loans, down 43.6% from $55 billion or 7.27% of loans. The region’s net credit margin was $132 billion, or 18.7% of average loans, up 7.3% from $123 billion, 16.27% of average loans.
Loans 90 days or more past due totaled $69 billion, or 2.38% of end-of-period loans, down 23.3% from $90 billion, or 3% of end-of-period loans. Loans 30 to 89 days past due totaled $86 billion, or 2.97% of end-of-period loans, down 44.5% from $155 billion, or 5.17% of end-of-period loans.
Latin America
In Latin America, cards revenue totaled $933 billion, up 8.9% from $857 billion. The region reported a $281 billion profit for the quarter; it generated a $77 billion loss a year earlier.
Sales on Citi-branded credit cards totaled $8.2 billion, up 13.9% from $7.2 billion.
Net interest revenue totaled $687 billion, up 2.5% from $670 billion. Accounts at the end of the period totaled 12.4 million, up 0.8% from 12.3 million.
Average loans for the quarter were $12.3 billion, up 1.7% from $12.1 billion.
Net credit losses totaled $322 billion, or 10.39% of average loans, down 40.7% from $543 billion or 17.8% of average loans. The region’s net credit margin was $611 billion, or 19.71% of average loans, up 94.6% from $314 billion, 10.3% of average loans.
Loans 90 days or more past due totaled $472 billion, or 3.75% of end-of-period loans, down 22.5% from $609 billion, or 5.03% of end-of-period loans. Loans 30 to 89 days past due totaled $442 billion, or 3.51% of end-of-period loans, down 26.8% from $604 billion, or 4.99% of end-of-period loans.
Asia
In Asia, cards revenue totaled $692 billion, up 8% from $641 billion. The region reported a $175 billion profit for the quarter, up 150% from $70 billion.
Sales on Citi-branded credit cards totaled $16 billion, up 15.9% from $13.8 billion.
Net interest revenue totaled $452 billion, up 2.7% from $440 billion. Accounts at the end of the period totaled 15 million, down 0.7% from 15.1 million.
Average loans for the quarter were $18.4 billion, up 10.2% from $16.7 billion.
Net credit losses totaled $164 billion, or 3.54% of average loans, down 33.9% from $248 billion or 5.89% of average loans. The region’s net credit margin was $528 billion, or 11.38% of average loans, up 34.4% from $393 billion, 9.34% of average loans.
Loans 90 days or more past due totaled $242 billion, or 1.27% of end-of-period loans, down 23.2% from $315 billion, or 1.85% of end-of-period loans. Loans 30 to 89 days past due totaled $328 billion, or 1.73% of end-of-period loans, down 10.6% from $367 billion, or 2.16% of end-of-period loans.
As a company, Citi reported net income of $2.17 billion for the quarter, up considerably from the $101 million profit a year earlier. In terms of income allocated to unrestricted common shareholders, Citigroup generated a profit of $2.15 billion during the quarter; it experienced a $3.24 billion loss a year earlier.
Net revenue totaled $20.74 billion, up 1.7% from $20.39 billion.
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