Citi sees credit deterioration in India in Q2
Income from Citigroup's banking division, Citicorp, fell by 40 pc in Asia.
New York: Citigroup, which swung into a second quarter profit, on Friday said income from its banking division, Citicorp, fell by 40 per cent in Asia and also saw credit deterioration in India in the April-June period.
The income of Citicorp, the retail banking and commercial and investment banking division, in Asia slumped 40 per cent to $272 million compared to that in the year-ago period.
"Income (at Citicorp in Asia) was USD 272 million, down 40 per cent from the prior year period, as declining revenues and increasing credit costs were partially offset by expense reductions," Citigroup said in a statement.
"Card net credit loss rate increased to 6 per cent from 3.4 per cent in the prior- year period. Credit deterioration was particularly apparent in the card portfolios in India and Korea," the firm said.
Citicorp revenues from Asia declined by 14 per cent to $1.6 billion, primarily driven by the impact of foreign exchange and lower investment product volumes in Q2.
Credit costs were $504 million, up 55 per cent from the prior year period. Loan loss reserve build increased to $150 million from $84 million," the statement said.
Citigroup on Friday posted a profit of $4.28 billion in the second quarter whereas it had a loss of $2.49 billion in the same period a year ago.