Citigroup posted a net income of $3.8 billion for its 3Q/11, 74% higher than the year ago period and 13% over 2Q/11, while revenues reached $20.8 billion, up only marginally from the year ago and 2Q/11 figures.Citicorp revenues, excluding CVA, were down 2% from the prior year period largely due to lower revenues in Securities and Banking that more than offset higher revenues in Regional Consumer Banking (RCB), while Citi Holdings revenues declined 27% from the prior year period largely from the impact of a 31% decline in Citi Holdings assets from the third quarter 2010. North America RCB revenues of $3.4 billion were 9% lower than the prior year period thanks to lower average card balances, the impact on card yields of the look-back provisions of the Credit Card Accountability Responsibility and Disclosure (CARD) Act and lower gains on sale in mortgages. However, Transaction Services revenues grew 7% from the prior year period to $2.7 billion as a result of higher balances and growth across trade, cards and securities services.
Credit reserve releases in Citicorp of $585 million were $159 million higher than the prior year period as additional credit reserve releases in North America RCB, largely related to Citi-branded cards, were offset by lower credit reserve releases from international RCB. Citi Holdings credit reserve releases fell $703 million to $838 million as releases in Local Consumer Lending (LCL) decreased, largely due to lower releases in the retail partner cards portfolio, and lower releases in the Special Asset Pool (SAP) where total loan levels continue to decline.
