Citicorp’s net credit losses dropped 27% to $2.2 billion during the second quarter, driven by Citi-branded cards in North America, John Gerspach, Citi chief financial officer, told analysts during a Friday conference to discuss the quarter’s earnings.

“We released $914 million in net loan-loss reserves, up from $665 million last year, due to higher net releases in Citi-branded cards, partially offset by lower releases in international Consumer Banking and the corporate portfolio,” he said.

Revenue from Citi-branded cards during the quarter ended June 30 totaled $4.09 billion, down 0.7% from $4.12 billion during the same period last year. Net credit losses for Citi-branded cards totaled $1.7 billion, down 35.1% from $2.62 billion. Income from continuing operations totaled $968 million, up 227% from $296 million.

The number of open Citi-branded card accounts totaled 52.3 million, up 3% from 50.8 million. Purchase sales totaled $71.3 billion, up 11.6% from $63.9 billion. Average loans were $110.1 billion, up 1.5% from $108.5 billion.

Net interest revenue was $3.13 billion, down 2.5% from $3.21 billion. Net credit losses totaled $1.7 billion, down 35.1% from $2.62 billion. Loans more than 90 days past due totaled $1.97 billion, down 32.8% from $2.93 billion, while those 30 to 89 days late totaled $2.02 billion, down 26% from $2.73 billion.

Regionally, in North America revenue from Citi-branded cards during the quarter totaled $2.12 billion, down 10.5% from $2.37 billion. Net credit losses for Citi-branded cards totaled $1.23 billion, down 40% from $2.05 billion. Income from continuing operations totaled $584 million, which compares with a $154 million loss a year earlier.

The number of open Citi-branded card accounts in North America totaled 21.2 million, down 0.5% from 21.3 million. Purchase sales totaled $39.9 billion, up 1.5% from $39.3 billion. Average loans were $72.4 billion, down 5% from $76.2 billion.

Net interest revenue in North America was $1.72 billion, down 11.3% from $1.94 billion. Net credit losses totaled $1.23 billion, down 40% from $2.05 billion. Loans more than 90 days past due totaled $1.21 billion, down 43.2% from $2.13 billion, while those 30 to 89 days late totaled $1.13 billion, down 38.3% from $1.83 billion.

During the conference call, Gerspach noted that Citi is in the process of rebuilding the cards portfolio in North America. “I would like to see a couple of quarters of growth before I say that we have actually turned a corner,” he said. “But it is good to see at least that first quarter where you have got some small amount of sequential growth.”

In the Europe/Middle East and Africa region, revenue from Citi-branded cards during the quarter totaled $176 million, up 2.9% from $171 million. Income from continuing operations totaled $45 million, up 7.1% from $42 million.

The number of open Citi-branded card accounts in the region totaled 2.5 million, up 19% from 2.1 million. Purchase sales totaled $2.7 billion, up 28.6% from $2.1 billion. Average loans were $3 billion, up 11.1% from $2.7 billion.

Net interest revenue in the region was $121 billion, up 3.4% from $117 billion. Net credit losses totaled $23 billion, down 41% from $39 billion. Loans more than 90 days past due totaled $54 billion, down 25% from $72 billion, while those 30 to 89 days late totaled $72 billion, down 20% from $90 billion.

In Latin America, revenue from Citi-branded cards during the quarter totaled $1.01 billion, up 14.5% from $882 million. Income from continuing operations totaled $160 million, down 20% from $216 million.

The number of open Citi-branded card accounts in Latin America totaled 13 million, up 6.6% from 12.2 million. Purchase sales totaled $10 billion, up 33.3% from $7.5 billion. Average loans were $14 billion, up 16.7% from $12 billion.

Net interest revenue in Latin America was $748 billion, up 10.5% from $677 billion. Net credit losses totaled $308 billion, down 14.7% from $361 billion. Loans more than 90 days past due totaled $462 billion, down 4% from $481 billion, while those 30 to 89 days late totaled $469 billion, down 3.3% from $485 billion.

In Asia, revenue from Citi-branded cards during the quarter totaled $791 million, up 14.1% from $693 million. Income from continuing operations totaled $179 million, down 6.8% from $192 million.

The number of open Citi-branded card accounts in Asia totaled 15.6 million, up 4.7% from 14.9 million. Purchase sales totaled $18.7 billion, up 24.7% from $15 billion. Average loans were $20.7 billion, up 17.6% from $17.6 billion.

Net interest revenue in Asia was $543 billion, up 14.8% from $473 billion. Net credit losses totaled $145 billion, down 15.2% from $171 billion. Loans more than 90 days past due totaled $250 billion, up 1.6% from $246 billion, while those 30 to 89 days late totaled $351 billion, up 8.3% from $324 billion.

Retail partner card business revenue totaled $1.7 billion, down 19% from $2.1 billion. Net credit losses were $956 million, down 43.8% from $1.7 billion. Income from continuing operations totaled $490 million, up 380% from 102 million.

The number of open retail card accounts totaled 85.8 million, down 7.1% from 92.4 million. Purchase sales totaled $19.6 billion, down 8.4% from $21.4 billion. Average loans were $41.8 billion, down 21.3% from $53.1 billion.

Net interest revenue for retail partner cards was $1.7 billion, down 15% from $2 billion. Net credit losses totaled $956 million, down 46.9% from $1.8 billion. Loans more than 90 days past due totaled $1.1 billion, down 45% from $2 billion, while those 30 to 89 days late totaled $1.5 billion, down 31.8% from $2.2 billion.

 

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