Citigroup reported today a 4Q profit for 2013 at double that of its 4Q profit of 2012. Net Income was at $2.7 billion on revenues of $17.8 billion for 4Q/2013 compared to net income of $1.2 billion on revenues of $17.9 billion for 4Q/2012. CVA/DVA was a negative $164 million ($100 million after-tax) in the fourth quarter, mainly resulting from the improvement in Citigroup’s credit spreads, compared to negative $485 million ($301 million after-tax) in the prior year period. Excluding CVA/DVA, fourth quarter revenues were $17.9 billion, down 2% from the prior year period. Fourth quarter 2013 results also included a $189 million after-tax benefit related to the divestiture of Citi’s Credicard business in Brazil, while results in the prior year period included a $1.0 billion repositioning charge ($653 million after-tax). Excluding CVA/DVA, the impact of the Credicard divestiture in the fourth quarter 2013 and the fourth quarter 2012 repositioning charge,6 earnings were $0.82 per diluted share, up 19% from the prior year period.
Citigroup is changing its management structure, appointing John Havens President and Chief Operating Officer and will oversee Francesco Vanni d’Archirafi, CEO of Global Transaction Services. Most recently CEO of Citi’s Institutional Clients Group, Havens will be responsible for Citi’s day-to-day operations. He will also oversee James A. Forese, currently the Co-Head of Global Markets, who will become the CEO of Securities and Banking, while Ned Kelly, currently a Citi Vice Chairman, will assume a new role as Chairman of the Institutional Clients Group.
Citi has appointed Gary Crittenden, previously Chief
Financial Officer, as Chairman
of Citi Holdings, and Edward “Ned” Kelly, previously the Head of Global
Banking,as Chief Financial Officer. In this new operational role, Crittenden will work with Mike Corbat,
the interim CEO of Citi Holdings, to optimize the value of the
businesses in this unit. Citi Holdings represents a significant portion
of the assets of Citigroup.