Citibank 2012 Annual Report Download - page 162

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CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME Citigroup Inc. and Subsidiaries
Years Ended December 31,
In millions of dollars, except per share amounts 2012 2011 2010
Revenues
Interest revenue $ 68,138 $ 72,681 $ 79,282
Interest expense 20,535 24,234 25,096
Net interest revenue $ 47,603 $ 48,447 $ 54,186
Commissions and fees $ 12,926 $ 12,850 $ 13,658
Principal transactions 4,781 7,234 7,517
Administration and other fiduciary fees 4,012 3,995 4,005
Realized gains (losses) on sales of investments, net 3,251 1,997 2,411
Other-than-temporary impairment losses on investments
Gross impairment losses (1) (5,037) (2,413) (1,495)
Less: Impairments recognized in AOCI 66 159 84
Net impairment losses recognized in earnings $ (4,971) $ (2,254) $ (1,411)
Insurance premiums $ 2,476 $ 2,647 $ 2,684
Other revenue (2) 95 3,437 3,551
Total non-interest revenues $ 22,570 $ 29,906 $ 32,415
Total revenues, net of interest expense $ 70,173 $ 78,353 $ 86,601
Provisions for credit losses and for benefits and claims
Provision for loan losses $ 10,848 $ 11,773 $ 25,194
Policyholder benefits and claims 887 972 965
Provision (release) for unfunded lending commitments (16) 51 (117)
Total provisions for credit losses and for benefits and claims $ 11,719 $ 12,796 $ 26,042
Operating expenses
Compensation and benefits $ 25,204 $ 25,688 $ 24,430
Premises and equipment 3,282 3,326 3,331
Technology/communication 5,914 5,133 4,924
Advertising and marketing 2,224 2,346 1,645
Other operating 13,894 14,440 13,045
Total operating expenses (3) $ 50,518 $ 50,933 $ 47,375
Income (loss) from continuing operations before income taxes $ 7,936 $ 14,624 $ 13,184
Provision for income taxes (benefit) 27 3,521 2,233
Income from continuing operations $ 7,909 $ 11,103 $ 10,951
Discontinued operations
Income (loss) from discontinued operations $ (219) $ 23 $ 72
Gain (loss) on sale (1) 155 (702)
Provision (benefit) for income taxes (71) 66 (562)
Income (loss) from discontinued operations, net of taxes $ (149) $ 112 $ (68)
Net income before attribution of noncontrolling interests $ 7,760 $ 11,215 $ 10,883
Noncontrolling interests 219 148 281
Citigroup’s net income $ 7,541 $ 11,067 $ 10,602
Basic earnings per share (4)
Income from continuing operations $ 2.56 $ 3.69 $ 3.66
Income (loss) from discontinued operations, net of taxes (0.05) 0.04 (0.01)
Net income $ 2.51 $ 3.73 $ 3.65
Weighted average common shares outstanding 2,930.6 2,909.8 2,877.6
Diluted earnings per share (4)
Income from continuing operations $ 2.49 $ 3.59 $ 3.55
Income (loss) from discontinued operations, net of taxes (0.05) 0.04 (0.01)
Net income $ 2.44 $ 3.63 $ 3.54
Adjusted weighted average common shares outstanding (4) 3,015.5 2,998.8 2,967.8
(1) 2012 includes the recognition of a $3,340 million impairment charge related to the carrying value of Citi's remaining 35% interest in the Morgan Stanley Smith Barney joint venture (MSSB), as well as the recognition of
a $1,181 million impairment charge related to Citi’s investment in Akbank. See Note 15 to the Consolidated Financial Statements.
(2) Other revenue for 2012 includes a $1,344 million loss related to the sale of a 14% interest in MSSB, as well as the recognition of a $424 million loss related to the sale of a 10.1% stake in Akbank.
(3) Citigroup recorded repositioning charges of $1,375 million for 2012, $706 million for 2011 and $507 million for 2010.
(4) All per share amounts and Citigroup shares outstanding for all periods reflect Citigroup’s 1-for-10 reverse stock split, which was effective May 6, 2011.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.