Citigroup Reports Earnings, Income Declines in Q2

""Citigroup"":http://www.citigroup.com/citi/ reported a net income of $2.9 billion, $0.95 per share, during the second quarter of this year, down 12 percent from the second quarter of last year, according to its earnings report released Monday.

[IMAGE]

The bank's revenues totaled $18.6 billion in the second quarter, a 10 percent decline from last year.

According to Citigroup, the decline in earnings is largely the result of the ongoing process of winding down Citi Holdings, a division opened in 2009 to house assets and businesses the bank hopes to unload.

[COLUMN_BREAK]

As of the end of the second quarter, Citi Holdings assets make up 10 percent of Citigroup's total assets.

Citi Holdings revenues declined 62 percent to $924 million in the second quarter, while CitiCorp, which the bank considers its core business, reported its revenues ""were essentially unchanged"" at $18 billion.

Citicorp's net income rose 6 percent over the quarter, but this can partially be attributed to a 3 percent decrease in operating expenses and a decrease in the bank's allowance for loan losses. Citi decreased its loan loss allowance from 5.4 percent in the second quarter of last year to 4.3 percent.

""Our core businesses performed well in a difficult environment and are generating solid returns,"" said Vikram Pandit, CEO of Citigroup, adding that the bank's ""capital strength and liquidity continue to be among the best in the industry.""

While Citi's global consumer banking revenues held steady at $9.8 billion, matching last year's revenues, the bank's global consumer banking revenues in North America grew 4 percent ""driven by higher retail banking revenues that were partially offset by lower revenues from Citi-branded cards and Citi retail services,"" according to a press release from Citi Monday.

Retail banking revenues in North America increased 32 percent, driven by mortgage revenues, according to Citigroup.