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Citigroup today reported net income of $467 million from its credit and debit cards portfolio for the second quarter ended June 30, down 57.5% from $1.1 billion during the same period last year. Contributing to that lower income were global net credit card losses of $1.4 billion, up roughly 64.7% from $850 million last year. Citi increased its credit reserve last quarter to $582 million, up 36.9% from $425 million last year. Net interest revenue from cards was $3 billion during the quarter, up 11.1% from $2.7 billion last year. Noninterest card revenue was $2.4 billion last quarter, down 7.7% from $2.6 billion last year. Citi had 185.1 million card accounts worldwide at the end of last quarter, down less than 1% from 184.9 million accounts at the same time last year. Purchase volume on Citi cards was $116 billion, down 6.1% from $109.3 billion. Citi's North American purchase volume during the quarter totaled $83.8 billion, virtually up just slightly from $83.5 billion during the same period last year. "We have seen a slow down in our North American card purchase sales as we have tightened underwriting standards and where discretionary spending is declining and spending on essentials, such as gas and food, is increasing due to higher prices," Gary Crittenden, Citi chief financial officer, told analysts during a conference call today. Worldwide, Citi's average managed receivables during the quarter were $200.7 million, up 10.9% from $180.9 million a year earlier.

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