Citigroup says it had net income of $4.3 billion in the second quarter of 2009 and revenues of $30 billion. These results include an $11.1 billion pre-tax ($6.7 billion after-tax) gain associated with the Morgan Stanley Smith Barney joint venture transaction, which closed June 1.
“Our financial results today reflect the incredibly dedicated efforts of all of our people around the world and their success in implementing our plan,” says Citi CEO Vikram Pandit. “Our earnings of $4.3 billion reflect the benefit of the closing of the Smith Barney joint venture with Morgan Stanley, which was a key element in our Citi Holdings strategy. This quarter’s results underscore the earnings power of Citicorp, with over $3 billion of net income.”
Headcount declined by approximately 30,000 from the first quarter of 2009, to 279,000, mainly driven by the Smith Barney transaction, the company says.
Brokerage and asset management (BAM) revenues were $12.3 billion in the current period, up from $2.5 billion in the second quarter of 2008, mainly driven by the gain on the Smith Barney transaction, offset partially by the absence of one month of Smith Barney revenues. Net income was $6.8 billion, up from $218 million in the prior year period, due to the Smith Barney gain on sale.
Expenses for BAM were $1.1 billion, down 45 percent from the prior year period due to the absence of one month of Smith Barney expenses, lower variable compensation and re-engineering efforts.
End of period assets were $56 billion, down 14 percent, consistent with management efforts to reduce assets.