Citigroup Inc. today reported net income for the 2007 second quarter of $6.23 billion, or $1.24 per share, both up 18 percent.
“We have very clear priorities to drive growth and we are executing on all of them,” says Charles Prince, Citi Chairman and Chief Executive Officer. “We continued to generate revenue and volume growth in our U.S. consumer franchise, while making excellent progress in re-weighting Citi toward our other businesses where revenues and net income increased over 30 percent.”
Revenues were up 20 percent, led by 34 percent growth in international revenues.
Prince adds: “We also began to implement the structural expense initiatives announced in April, which are generating improved efficiencies. These initiatives, coupled with strong revenue growth, drove positive operating leverage this quarter and helped offset increased credit costs.”
Credit costs increased $934 million, primarily driven by an increase in net credit losses of $259 million and a net charge of $465 million to increase loan loss reserves.