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interestrateripoff

Citigroup Profits Jump As Bad Loans Turn Good

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http://www.bbc.co.uk/news/business-14168042

Citigroup profits have soared 24% as the banking giant managed to cut back its losses from bad loans.

The bank - the third largest in the US - earned $3.34bn (£2.07bn) in the three months to the end of June.

The numbers were well ahead of Wall Street expectations, and the sixth quarterly profit in a row.

"It's a good quarter, they're fixing a lot of problems, but they're not out of the woods yet," said Matt McCormick of investment advisers Bahl & Gaynor.

But he warned that "the bank still had overall revenue decline, trading declined and they are still taking a lot of quarterly profit from loan loss reserves."

Great news the banks are recovering.....

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http://www.zerohedge.com/article/citi-beats-earnings-2-billion-reserve-releases-generate-half-pre-tax-income

All you need to know about Citi's $1.09 beat of $0.96 consensus EPS: "Citigroup’s total allowance for loan losses was $34.4 billion at quarter end, or 5.4% of total loans. The $2.0 billion net release of credit reserves was 37% higher than the prior year period as credit quality continued to improve during the second quarter. More than half of the net credit reserve release was attributable to Citi Holdings. Consumer loans that were 90+ days delinquent, excluding the Special Asset Pool (SAP), fell 46% versus the prior year period to $9.9 billion, or 2.3% of consumer loans, while corporate non-accrual loans fell 56% to $4.8 billion and consumer non-accrual loans fell 39% to $8.4 billion." Translated: the "improvement" in mortgage loan standards (despite the ongoing foreclosure moratorium) is what "urged" the bank that it should provision less, and drive EPS higher. In other words of the $4.3 billion in pretax net income, almost half came from loan loss reserve releases. Since Q2 2009, loan loss reserve changes have reduced pretax income by $5.6 billion and added to pretax income by $11.2 billion. And that is what in the New Normal, is called "Income".

http://www.scribd.com/doc/60086499/Earnings-Presentation

http://money.msn.com/business-news/article.aspx?feed=BW&Date=20110715&ID=13944688

Then again maybe not.

Edited by interestrateripoff

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When I read the title I knew what they had done without having to open it.

Mark your loans as lower risk, reduce the money you put aside to cover bad loans, book that reduction in money put aside as profit.

It's one last throw of the dice, one last bonus payout before the implosion.

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When I read the title I knew what they had done without having to open it.

Mark your loans as lower risk, reduce the money you put aside to cover bad loans, book that reduction in money put aside as profit.

It's one last throw of the dice, one last bonus payout before the implosion.

Well they do expect the taxpayer to come to the rescue again....

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Here we go again....

what they really need in the US, is a European stile set of "stress tests"...that will retunr confidence to the system as it has here in Europe.

No more fudging needed Mr Bernanke.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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