Citibank 2010 Annual Report Download - page 43

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2009 vs. 2008
Revenues, net of interest expense declined 9%, driven by the absence of the
gain on Visa shares in 2008, lower investment product revenues and cards
purchase sales, lower spreads, and the impact of FX translation.
Net interest revenue was 5% lower than in 2008. Average loans and
deposits were down 10% and 4%, respectively, in each case partly due to the
impact of FX translation.
Non-interest revenue declined 19%, primarily due to the decline in
investment revenues, lower cards purchase sales, the absence of the gain on
Visa shares and the impact of FX translation.
Operating expenses declined 9%, reflecting the benefits of re-engineering
efforts and the impact of FX translation. Expenses increased slightly in the
fourth quarter 2009, primarily due to targeted marketing and investment
spending.
Provisions for loan losses and for benefits and claims increased 29%,
mainly due to the impact of a higher credit reserve build and an increase in
net credit losses, partially offset by the impact of FX translation. In the first
half of 2009, rising credit losses were particularly apparent in the portfolios
in India and South Korea. However, delinquencies improved in the latter part
of the year and net credit losses flattened as the region showed early signs of
economic recovery and increased levels of customer activity.