Citigroup Inc. today reported net income for the first quarter of US$5.01 billion, including a charge of US$1.38 billion related to a structural expense review conducted during the quarter.

That compared with quarterly profit of $US5.64 billion a year earlier.

Excluding the charge, net income was US$5.88 billion. Return on common equity was 17.1%.

“We generated strong momentum this quarter, with revenues increasing 15% to a record, driven by growing customer business volumes,” said Charles Prince, chairman and chief executive officer of Citi. “Global consumer deposits were up 12% and global consumer loans grew 11%. In our international franchises, revenues grew 18%, led by international markets & banking revenue up 20%. Our revenue growth combined with improving expense management and, after adjusting for certain non-recurring items, we generated positive operating leverage. Offsetting our improved revenue and expense performance were higher credit costs and a lower level of tax benefits than last year.”

“We continued to invest in expanding our distribution and enhancing our technology as we build a broad, strong foundation for future growth,” he added. “We also announced the acquisition of Egg, Ltd. in the
U.K., the world’s largest internet bank, and we launched a tender offer to acquire 100% of Nikko Cordial in Japan, consistent with our effort to drive growth through a balance of organic investment and targeted acquisitions and expand internationally.”

“We achieved these results while completing our structural expense review, which will help us become a leaner, more efficient organization and lower our rate of expense growth. As we look ahead, our priorities are clear: we will invest to grow and integrate our businesses, take actions to improve efficiency and lower costs, and continue to build momentum across our franchises,” said Prince.