Citibank 2012 Annual Report Download - page 47

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SECURITIES AND BANKING
Securities and Banking (S&B) offers a wide array of investment and commercial banking services and products for corporations, governments, institutional
and public sector entities, and high-net-worth individuals. S&B transacts with clients in both cash instruments and derivatives, including fixed income, foreign
currency, equity, and commodity products. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional
brokerage, derivative services and private banking.
S&B revenue is generated primarily from fees and spreads associated with these activities. S&B earns fee income for assisting clients in clearing transactions,
providing brokerage and investment banking services and other such activities. Revenue generated from these activities is recorded in Commissions and fees.
In addition, as a market maker, S&B facilitates transactions, including holding product inventory to meet client demand, and earns the differential between
the price at which it buys and sells the products. These price differentials and the unrealized gains and losses on the inventory are recorded in Principal
transactions. S&B interest income earned on inventory and loans held is recorded as a component of net interest revenue.
In millions of dollars, except as otherwise noted 2012 2011 2010
% Change
2012 vs. 2011
% Change
2011 vs. 2010
Net interest revenue $ 9,676 $ 9,123 $ 9,728 6% (6)%
Non-interest revenue 10,067 12,300 13,394 (18) (8)
Revenues, net of interest expense $19,743 $21,423 $23,122 (8)% (7)%
Total operating expenses 14,444 15,013 14,628 (4) 3
Net credit losses 168 602 567 (72) 6
Provision (release) for unfunded lending commitments 33 86 (29) (62) NM
Credit reserve build (release) (79) (572) (562) 86 (2)
Provisions for credit losses $ 122 $ 116 $ (24) 5% NM
Income before taxes and noncontrolling interests $ 5,177 $ 6,294 $ 8,518 (18)% (26)%
Income taxes 682 1,381 1,967 (51) (30)
Income from continuing operations $ 4,495 $ 4,913 $ 6,551 (9)% (25)%
Noncontrolling interests 111 37 110 NM (66)
Net income $ 4,384 $ 4,876 $ 6,441 (10)% (24)%
Average assets (in billions of dollars) $ 904 $ 894 $ 842 1% 6%
Return on average assets 0.48% 0.55% 0.77%
Efficiency ratio 73% 70% 63%
Revenues by region
North America $ 6,104 $ 7,558 $ 9,393 (19)% (20)%
EMEA 6,417 7,221 6,849 (11) 5
Latin America 3,019 2,370 2,554 27 (7)
Asia 4,203 4,274 4,326 (2) (1)
Total revenues $19,743 $21,423 $23,122 (8)% (7)%
Income from continuing operations by region
North America $ 1,011 $ 1,044 $ 2,495 (3)% (58)%
EMEA 1,354 2,000 1,811 (32) 10
Latin America 1,308 974 1,093 34 (11)
Asia 822 895 1,152 (8) (22)
Total income from continuing operations $ 4,495 $ 4,913 $ 6,551 (9)% (25)%
Securities and Banking revenue details (excluding CVA/DVA)
Total investment banking $ 3,641 $ 3,310 $ 3,828 10% (14)%
Fixed income markets 13,961 10,891 14,265 28 (24)
Equity markets 2,418 2,402 3,710 1(35)
Lending 997 1,809 971 (45) 86
Private bank 2,314 2,138 2,009 86
Other Securities and Banking (1,101) (859) (1,262) (28) 32
Total Securities and Banking revenues (ex-CVA/DVA) $22,230 $19,691 $23,521 13% (16)%
CVA/DVA $ (2,487) $ 1,732 $ (399) NM NM
Total revenues, net of interest expense $19,743 $21,423 $23,122 (8)% (7)%
NM Not meaningful