Citigroup 2Q 2014 Conference Call Highlights - Citigroup (NYSE:C)

Citigroup Inc.

released its 2014 2Q conference call on 10:00pm Monday. The company reported strong results of banking revenue, expects recovery from legal and restructuring fee, and profitability. Before Citi's conference call, the company reported an EPS for the second quarter of $1.24 versus consensus expectations of $1.10. Revenues for the quarter were higher than anticipated, the financial reported its 2Q revenues of 19.38 billion compared to analysts estimates of 18.95 billion.

Highlights From The Conference Call:

Adjusted Revenues came out to $19,375 reporting a profit for the second quarter. Before legal and restructuring fees revenue decreased by nearly 6 percent since last years second quarter, from $20,488 million 2Q 2013 to $19,342 million 2Q 2014.
Net Income and EBT decreased very heavily due to Mortgage settlements and CVA/DVA. Lower revenue offset by lower operating expense.
Selling operating locations in Greece and Spain.>During second quarter downsizing took place. Opening 31 new locations in the quarter.
Headwinds faced in Korea are settling.
$3.7 billion after tax charge due to settlements.
legal effect cos of $400 million due to Korean restructuring.
Core expenses down since last quarter and nearly 2 percent since 2013 2Q.
Operating expense increased 12 percent since last year due to korean headwinds.
Average deposits increase 3 percent for the year.
Retail services revenue increased by 7 percent. Grew average retail loans by 11 percent for the year and average deposits by 4 percent for the year.
Loan loss reserve release of nearly $400 million.
Total banking revenues grew to $4.5 million. Investment banking revenues increased by 16 percent for the year, 27 percent for the second quarter.
Fixed Income revenue declined by 12 percent for the year and ee percent for the quarter. Lower client activity led to decrease in Equity Market revue of 26 percent for the year and 25 percent for the quarter.
Citi Holdings total revenues of 1.5 million. Operating margins with Citi Holdings, remained at $0.7 due to stable credit.

Guidance Given In Cal:l

Full year NCL rate expecting to be better than previously given guidance of 3 percent.Full year NCL rate in Latin America to be in line with the years estimates.
Revenues have declined in North America and Korea.
Basel III grew to 10.6 percent, ).01 percent for the quarter with supplement leverage ratio Basel III growing 0.01 percent from Q1 2015 to 5.7 percent.
North America revue should grow within second half of the year. With the end of repositioning efforts in Korea should pick up Korea's revue for the second half of the year.
Reserve releases to be lower in the second half.
tax rate to be broadly in line with the first half, currently standing at a 32 percent tax rate.

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