Citibank 2010 Annual Report Download - page 41

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2009 vs. 2008
Revenues, net of interest expense declined 17%, driven by the impact of FX
translation as well as lower activity in the branded cards business.
Net interest revenue decreased 18%, mainly driven by FX translation
as well as lower volumes and spread compression in the branded cards
business that offset the growth in loans, deposits and investment products
in the retail business.
Non-interest revenue decreased 13%, driven also by FX translation and
lower branded cards fee income from lower customer activity.
Operating expenses decreased 51%, primarily driven by the absence of the
goodwill impairment charge of $4.3 billion in 2008, the benefit associated
with FX translation and savings from restructuring actions implemented
primarily at the end of 2008. A $125 million restructuring charge in 2008
was offset by an expense benefit of $257 million related to a legal vehicle
restructuring. Expenses increased slightly in the fourth quarter 2009,
primarily due to selected marketing and investment spending.
Provisions for loan losses and for benefits and claims decreased 14%
primarily reflecting lower loan loss reserve builds as a result of lower volumes,
improved portfolio quality and lower net credit losses in the branded cards
portfolio, primarily in Mexico due to repositioning in the portfolio.