Citigroup's 4th Qtr Earnings Rise 96
Percent -- Stock Up 29%
01/21/2004
How Citigroup has done for us: 41.9% annualized (+28.7% in
8.6 months). Yesterday the company announced that last year's
net income was a record $17.85 billion and fourth quarter
earnings rose 96%. The company's statement follows:
01/20/2004 New York, NY — Citigroup Inc.
(NYSE:C) today reported record net income for the twelve months
ended December 31, 2003 of $17.85 billion, an increase of
17% over 2002. Results in 2002 included income related to
Travelers Property Casualty, which was subsequently spun off
to shareholders. Income from continuing operations of $17.85
billion increased 33% over 2002. Earnings per share from continuing
operations was $3.42, an increase of 32% over 2002.
For the fourth quarter of 2003, Citigroup’s
net income was $4.76 billion, or $0.91 per share, a 96% increase
from the fourth quarter of 2002 net income of $2.43 billion,
which included a $1.3 billion after-tax charge related to
the establishment of reserves for regulatory settlements and
related civil litigation. Excluding this charge, net income
rose 27%. Included in the fourth quarter 2003 results was
a $242 million after-tax charge for credit and trading losses
related to the fraud announced last month at Parmalat.
“Citigroup's record 2003 performance exemplifies
the earnings power of our best-in-class businesses and the
strength of our extraordinary model. We did more, for more
clients, in more places than any other financial services
company, and we are entering 2004 in an excellent business
position,” said Charles Prince, Chief Executive Officer of
Citigroup. “Customer volumes remain strong, as they were throughout
2003. We maintained the number one position in global debt
and equity underwriting as well as global disclosed fees.
We have established ourselves as the leading private label
credit card issuer. Our customer deposits through our retail
bank reached $241 billion globally, and total client assets
in our Private Client business passed the $1 trillion mark
this quarter. Our organic growth momentum, combined with the
acquisitions we announced during the year in key areas, including
the Sears credit card business, the Home Depot private label
relationship card business, the consumer finance business
of Washington Mutual, and Forum Financial, provide an unmatched
platform from which to grow,” said Prince.
“We surpassed $100 billion in equity capital
and trust preferred securities for the first time in our history,
and we increased our common dividend 94% during the year while
maintaining industry-leading credit ratings. Throughout the
year, we invested in each of our global businesses, strengthening
their competitive positions as we enter 2004. Our leading
market positions and our unique international presence make
us extremely well-positioned to capitalize on the improving
global economic environment.”
Mr. Prince continued, “Our ability to continue
to grow and evolve as an organization, even as we completed
a seamless transition to new leadership, was perhaps our most
important accomplishment. With the blueprint established under
Sandy Weill, we’ve continued to forge a new model of a highly
successful, global financial services company, capable of
delivering consistent growth to our shareholders.”
Certain statements in this document
are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act. These statements
are based on management’s current expectations and are subject
to uncertainty and changes in circumstances. Actual results
may differ materially from those included in these statements
due to a variety of factors. More information about these
factors is contained in Citigroup’s filings with the Securities
and Exchange Commission.
The complete press release can be found
at www.citigroup.com
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