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Actionable news in C: CITIGROUP Inc,

Citigroup Inc. (Nyse: C)

The following excerpt is from the company's SEC filing.

October 15, 2015

CITIGROUP REPORTS THIRD QUARTER 2015 EARNINGS PER SHARE OF $1.35;

$1.31 EXCLUDING CVA/DVA(1)

NET INCOME OF $4.3 BILLION; $4.2 BILLION EXCLUDING CVA/DVA

REVENUES OF $18.7 BILLION; $18.5 BILLION EXCLUDING CVA/DVA

NET INTEREST MARGIN OF 2.94%

RETURNED $2.1 BILLION OF CAPITAL TO COMMON SHAREHOLDERS;

REPURCHASED 36 MILLION COMMON SHARES

COMMON EQUITY TIER 1 CAPITAL RATIO OF 11.6%(2)

SUPPLEMENTARY LEVERAGE RATIO OF 6.8%(3)

BOOK VALUE PER SHARE OF $69.03

TANGIBLE BOOK VALUE PER SHARE OF $60.07(4)

CITI HOLDINGS ASSETS OF $110 BILLION DECLINED 20% FROM PRIOR YEAR PERIOD

AND REPRESENTED 6% OF TOTAL CITIGROUP ASSETS AT QUARTER END

YEAR-TO-DATE CITICORP EFFICIENCY RATIO OF 55%

YEAR-TO-DATE RETURN ON AVERAGE ASSETS OF 0.99% EXCLUDING CVA/DVA

YEAR-TO-DATE RETURN ON TANGIBLE COMMON EQUITY OF 10.0% EXCLUDING CVA/DVA

YEAR-TO-DATE UTILIZED APPROXIMATELY $2.1 BILLION OF DEFERRED TAX ASSETS

New York, October 15, 2015 Citigroup Inc. today reported net income for the third quarter 2015 of $4.3 billion, or $1.35 per diluted share, on revenues of $18.7 billion. This compared to net income of $2.8 billion, or $0.88 per diluted share, on revenues of $19.7 billion for the third quarter 2014.

CVA/DVA was $196 million ($127 million after-tax) in the third quarter 2015, compared to negative $371 million (negative $228 million after-tax) in the prior year period. Excluding CVA/DVA, revenues were $18.5 billion, down 8% from the prior year period, and earnings were $1.31 per diluted share, up 38% from prior year earnings of $0.95 per diluted share.

Michael Corbat, Chief Executive Officer of Citigroup, said, The quarter had more than its fair share of volatility and our results speak to the resilience of our franchise globally. And despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital. We remain on track to deliver our full-year efficiency and ROA targets. I feel good about the quality and consistency of our earnings over the course of this year, as we have continued to make solid progress against our core priorities.

Citi Holdings was profitable again this quarter and its assets declined 20% year-over-year to $110 billion. Consistent utilization of our deferred tax assets helped us generate $14 billion of regulatory capital. So far this year we have returned over $4 billion of that capital to our shareholders in the form of share buybacks and common stock dividends. Our tangible book value surpassed $60 per share and our Common Equity Tier One Capital

ratio increased to 11.6% on a fully-implemented basis. Challenging environments have become the norm, but the work we have done to make our firm simpler, smaller, safer and stronger has given us a resilient and sturdy platform from which to operate, Mr. Corbat concluded.

($ in millions, except per share amounts)

Citicorp

17,275

17,797

17,619

Total Revenues

18,692

19,470

19,689

Adjusted Revenues(a)

18,496

19,158

20,060

Expenses

10,669

10,928

12,955

Net Credit Losses

Credit Reserve Build/(Release)(b)

Provision for Benefits and Claims

Total Cost of Credit

Income (Loss) from Cont. Ops. Before Taxes

Provision for Income Taxes

Income from Continuing Operations

Net income (loss) from Disc. Ops.

Non-Controlling Interest

Citigroup Net Income

Adjusted Net Income(a)

Common Equity Tier 1 Capital Ratio(c)

Supplementary Leverage Ratio(d)

Return on Average Common Equity

Book Value per Share

Tangible Book Value per Share(e)

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information.

(a) Excludes, as applicable, CVA / DVA in all periods. For additional information, please refer to Appendix B.

(b) Includes provision for unfunded lending commitments.

(c) For additional information, please refer to Appendix D and Footnote 2.

(d) For additional information, please refer to Footnote 3.

(e) For additional information, please refer to Appendix E and Footnote 4.

Citigroup revenues

were $18.7 billion in the third quarter 2015, a decrease of 5% from the prior year period. Excluding CVA/DVA, revenues of $18.5 billion decreased 8% from the prior year period, as Citicorp revenues decreased by 5% and Citi Holdings revenues decreased 32%. Excluding CVA/DVA and the impact of foreign exchange translation(5), Citigroup revenues decreased 2% from the prior year period, as a 1% increase in Citicorp revenues was more than offset by the decrease in Citi Holdings.

Citigroups net income

increased 51% to $4.3 billion in the third quarter 2015 from the prior year period. Excluding CVA/DVA, net income of $4.2 billion increased 36%, primarily driven by lower operating expenses, lower net credit losses and a lower effective tax rate, partially offset by the lower revenues and a lower net loan loss reserve release. Citigroups effective tax rate was 30% in the current quarter, a decrease from 41% in the prior year period (excluding CVA/DVA in each period).

Citigroups operating expenses

were $10.7 billion in the third quarter 2015, 18% lower than in the prior year period. In constant dollars, operating expenses fell 13% versus the prior year period, mainly driven by lower legal and related expenses and repositioning costs. Operating expenses in the third quarter 2015 included legal and related expenses of $376 million, compared to $1.6 billion in the prior year period, and $81 million of repositioning

charges, compared to $382 million in the prior year period. Citigroups cost of credit in the third quarter 2015 was $1.8 billion, a 5% increase from the prior year period, as a lower net loan loss reserve release was partially offset by lower net credit losses.

Citigroups allowance for loan losses

was $13.6 billion at quarter end, or 2.21% of total loans, compared to $16.9 billion, or 2.60% of total loans, at the end of the prior year period. Net loan loss reserve releases decreased $536 million from the prior year period to $16 million. Total non-accrual assets fell 17% from the prior year period to $6.6 billion. Consumer non-accrual loans declined 23% to $4.8 billion, while corporate non-accrual loans increased 15% to $1.6 billion, primarily reflecting downgrades in the

North America

energy portfolio. Overall, more than two-thirds of the loans added to Citis corporate nonaccrual loans in the third quarter 2015 were performing as of quarter end.

Citigroups loans

were $622 billion as of quarter end, down 5% from the prior year period, and down 1% in constant dollars. In constant dollars, 5% growth in Citicorp loans was more than offset by continued declines in Citi Holdings, driven primarily by continued reductions in the

mortgage portfolio and the reclassification of loans to held-for-sale in connection with previously-announced agreements to sell OneMain Financial and Citis retail banking and credit card businesses in Japan.

Citigroups deposits

were $904 billion as of quarter end, down 4% from the prior year period, and were approximately unchanged in constant dollars. In constant dollars, Citicorp deposits increased 4% from the prior year period, driven by a 10% increase in

Institutional Clients Group

) deposits and a 2% increase in

Global Consumer Banking

deposits. In constant dollars, Citi Holdings deposits declined 83%, driven by the previously disclosed reclassification of Japan retail banking deposits to other liabilities during the fourth quarter 2014, as well as the transfer of MSSB deposits to Morgan Stanley, which was completed as of the end of the second quarter 2015.

Citigroups book value

per share was $69.03 and tangible book value per share was $60.07, each as of quarter end, representing 3% and 5% increases, respectively, compared to the prior year period. At quarter end, Citigroups Common Equity Tier 1 Capital ratio was 11.6%, up from 10.6% in the prior year period. Citigroups Supplementary Leverage Ratio for the third quarter 2015 was 6.8%, up from 6.0% in the prior year period. During the third quarter 2015, Citigroup repurchased approximately 36 million common shares and returned a total of $2.1 billion to common shareholders in the form of share repurchases and common stock dividends.

($ in millions)

Global Consumer Banking

Institutional Clients Group

Corporate/Other

17,054

17,494

17,935

11,609

Net Income

Latin America

Adjusted Income from Continuing Ops.(a)

(1,537

EOP Assets ($B)

EOP Loans ($B)

EOP Deposits ($B)

of $17.3 billion in the third quarter 2015 decreased 2% from the prior year period. CVA/DVA, reported within

, was $221 million in the third quarter 2015 ($143 million after-tax), compared to negative $316 million (negative $194 million after-tax) in the prior year period. Excluding CVA/DVA, revenues of $17.1 billion decreased 5% from the prior year period, with a 3% decline in

revenues and an 8% decrease in

revenues.

Corporate/Other

revenues were $218 million, a $136 million increase from the prior year period, primarily driven by gains on debt buybacks.

Citicorp net income

was $4.3 billion, 62% higher than the prior year period. Excluding CVA/DVA, Citicorps net income of $4.1 billion increased 46% from the prior year period, primarily driven by lower operating expenses and a lower effective tax rate, partially offset by the lower revenues and higher cost of credit.

Citicorp operating expenses

were $9.5 billion, an 18% decrease from the prior year period, driven by lower legal and related expenses and repositioning costs and the impact of foreign exchange translation. Operating expenses in the third quarter 2015 included legal and related...


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