Friday, April 17, 2009

Like Goldman, Like Citigroup

Like Goldman Sachs in its earnings report earlier this week, Citigroup seems to be losing money everywhere except in the black hole trading division.

From Citi's earnings release:
Citigroup Inc. (NYSE: C) today reported net income for the first quarter of 2009 of $1.6 billion... Revenues were $24.8 billion, approximately double those of the prior-year period. Strong trading results and lower net write-downs in Securities and Banking drove revenues. The difficult economic environment continued to have a negative impact on all other businesses.
What I wrote about the Goldman earnings applies for Citi:
Investment banking revenues were down, financial advisory revenues were down and net revenues in asset management were down. The only revenues that were up is where they could have been shoveled to Goldman through AIG. Net revenues in Trading and Principal Investments were $7.15 billion, compared with net revenues of $5.12 billion for the first quarter of 2008 and negative net revenues of $4.36 billion for the fourth quarter of 2008.

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