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.
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.
