Citibank 2009 Annual Report Download - page 35

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2008 vs. 2007
Revenues, net of interest expense increased 4%, driven by higher cards
purchase sales and higher loan and deposit volumes, partially offset
by lower gains on Visa shares than the prior year and a 47% decline in
investment sales.
Net interest revenue was 13% higher than the prior year reflecting higher
card balances, higher average loans and deposits, and better spreads.
Non-interest revenue declined 11%, primarily due to the lower gains on
Visa shares than the prior year and the decline in investment sales, partially
offset by higher cards purchase sales.
Operating expenses increased 11%, reflecting higher business volume and
restructuring expenses in 2008.
Provisions for loan losses and for benefits and claims increased 64%,
mainly due to higher net credit losses and higher credit reserve builds,
reflective of the overall economic environment in the region.
2010 Outlook
The 2010 performance of Asia RCB will continue to be driven by improving
macroeconomic conditions in the region, supported by continued investment
spending in the business and product capability. Asia RCB anticipates
continued investment in expanded retail distribution, an enhanced wealth
management offering and increased expenditure on card promotion and
account acquisition, which could result in an increase in year-on-year
expenses. While Asia RCB currently expects credit trends, including declining
net credit losses and improving delinquencies, to continue in 2010, credit
trends in the region will also be affected by the pace of recovery in the U.S.
and European Union.