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2011 Q1 Earnings: Citi Reports Lower Profits, Sales

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Citigroup said Monday that its first-quarter net income was $3.0 billion, or $0.10 per share. Net income was down 32% from last year, but earnings per share were $0.01 ahead of analysts’ expectations.

Though net income declined $1.4 billion on a year-over-year basis, it did more than double sequentially, the company noted in its earnings release.

Total revenue was $19.7 billion, below analysts’ estimates of $20.6 billion and down 22% from last year’s first-quarter results of $25.4 billion. Sales were up 7% over the previous quarter, with 62% of revenues (and 72% of net income) coming from international operations in the first quarter 2011.

"After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline. Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets," said CEO Vikram Pandit, left, in a statement.

Securities and Banking

Sales in this segment grew 70% from the prior quarter to $6.0 billion. Year over year, however, these revenues declined 25%, driven principally by lower fixed-income markets revenues and a negative credit-valuation adjustment (or CVA) of $229 million, compared to positive $285 million in the prior year period.

Citi also said its regional consumer banking revenuesof $7.9 billion were 2% lower than last year’s results. The decline was mainly driven by a decrease in North America (-12%), partially offset by 11% growth in Latin America.

Citi continues to own 49% of the Morgan Stanley Smith Barney joint venture, though it does not report these specific results in its earnings releases. (Morgan Stanley releases its first-quarter results on Wednesday.)

Read AdvisorOne's 2011 Q1 earnings calendar for more information about the finance sector.