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To: patron_anejo_por_favor who wrote (160009)	4/15/2002 8:15:01 AM
From: Bocor	Respond to of 436258

NEW YORK (CBS.MW) - Financial services giant Citigroup reported core first quarter earnings of 74 cents per share, or $3.86 billion. The Thomson Financial/First Call consensus analyst estimate for the quarter was 78 cents. In the year ago quarter the company had core income of 71 cents per share or $3.66 billion. Core income for the quarter included an $816 million pre-tax, or $519 million after-tax, charge reflecting the impact of the economic conditions in Argentina. The charge cut Citigroup's (C: news, chart, profile) core income per share by 10 cents after-tax. Citi also said its equity was reduced by $512 million as a result of the effect of currency translation in Argentina. "The very successful initial public offering of 23.1 percent of Travelers Property Casualty resulted in a $1.06 billion after-tax gain and roughly $5 billion in proceeds, and added 20 cents per share to our net income in the first quarter," said Citi CEO Sandy Weill. Citigroup's consumer business posted net income of $1.64 billion, up 21 percent from a year ago, on revenue of $8 billion. The firm said in a press release its consumer business's expenses fell 6 percent. "Japan consumer income increased 16 percent, reflecting continued growth in consumer finance receivables and reduced processing and technology expenses, partly offset by higher credit costs," the firm said. Citibank has been putting a lot of energy into its Japanese operations, and added that, "Excluding the impact of the declining value of the yen versus the U.S. dollar, income growth would have been 31 percent." Argentine charge Citi said the recent Argentine financial crisis led to "substantial write-downs" of its loan portfolios and additions to loan losses. Citi's total charges for the Argentine situation were $858 million pre-tax, including a $475 million addition to the loan loss provision, $269 million in loan and investment write-downs, a $72 million charge for currency redenomination, and a $42 million restructuring charge. "In addition, the impact of the devaluation of the peso since January 1, 2002, reduced Citigroup's equity by $512 million," the company said. Core income for the firm's emerging markets business totaled $559 million, down 15 percent from a year ago. Core income from the firm's corporate and investment banking operations slipped 4 percent to $987 million, and Core income at its private banking and investment management business rose 6 percent to of $406 million in. Travelers, the company's property and casualty insurance business posted first quarter core income of $327 million, down 4 percent. "Personal lines income fell 25 percent, reflecting increased weather-related costs, continued higher loss costs and a drop in net investment income, which offset 8 percent. Citi sold 231 million shares, or a bit less than 25 percent of Travelers in a March 27, 2002 initial public offering.