Citibank 2011 Annual Report Download - page 51

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Expenses increased 15% reflecting investment spending and higher
business volumes, partially offset by productivity savings. The increase in the
level of investment spending in the business was largely completed at the end
of 2011.
Provisions increased by $94 million, to $36 million, reflecting reserve
builds in 2011 versus a net reserve release in the prior year.
Average assets grew 21%, driven by a 59% increase in trade assets as a
result of focused investment in the business. Average deposits and other
customer liability balances grew 9% and included a favorable shift to
operating balances as the business continued to emphasize stable, lower cost
deposits as a way to mitigate spread compression.
2010 vs. 2009
Net income decreased 3%, as expenses driven by investment spending
outpaced revenue growth. Year-over-year, the U.S. dollar generally
depreciated versus local currencies. As a result, the impact of FX translation
accounted for approximately 2% growth in revenues.
Revenues grew 3%, despite the low interest rate environment. Treasury
and Trade Solutions revenues grew 2% as a result of increased customer
liability balances and growth in trade and fees, partially offset by the
spread compression. Securities and Fund Services revenues grew by 3% as
higher volumes and balances reflected the impact of sales and increased
market activity.
Expenses increased 9% reflecting investment spending and higher
business volumes.
Provisions decreased $65 million, to a negative $58 million, as compared
to the prior year, reflecting credit reserve releases.
Average deposits and other customer liability balances grew 10%,
driven primarily by growth in emerging markets.