Citibank’s international card business posted a significant decline in second quarter (Q2/14) profits. Profits for Citi-branded cards in the LAC region declined 42%, while Asia slipped 17% and the EMEA collapsed by 70% as Citi exits that market. Combined the three regions contributed $255 million in net income to Citibank.
In the Asia region Q2/14 net income for Citi-branded cards decreased 3% sequentially and decreased 17% year-on-year (Y/Y) to $156 million. Citi has 16.3 million open accounts in the Asia region producing $20.1 billion in purchase volume and $19.3 billion in End-of-Period (EOP) outstandings, during the second quarter of 2014.
In the Latin America region second quarter net income for Citi-branded cards decreased 14% sequentially and 42% Y/Y to $91 million. Citi has 9.0 million open accounts in the Latin America region producing $8.1 billion in purchase volume and $11.7 billion in EOP outstandings, during the second quarter of 2014.
In the Europe Middle East and Africa (EMEA) region second quarter net income for Citi-branded cards decreased 64% sequentially and 70% Y/Y to $8 million. Citi has 2.1 million open accounts in the EMEA region producing $2.6 billion in purchase volume and $2.5 billion in EOP outstandings during Q2/14.
RAM Research projects profits to increase to $260 million in the third quarter.
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EOP outstandings include interest and fees receivables balances.