Meanwhile, revenues decreased 2% year-over-year to $18.58 billion from the previous year quarter, which included the impact of a $150 million gain on the sale of the Hilton portfolio in North America Global Consumer Banking. Excluding the gain, revenues inched down 1% due to lower revenues in Equity Markets as well as mark-to-market losses on loan hedges, both in the Institutional Clients Group, and the continued wind-down of legacy assets in Corporate/Other.
For the first quarter, revenue from Global Consumer Banking of $8.5 billion remained largely unchanged on a reported basis. In constant currency, revenues rose 4%, excluding the gain on the sale of the Hilton portfolio in the prior-year period, driven by growth in all three regions.
Institutional Clients Group revenues declined by 2% due to weakness in foreign exchange, lower market volumes and client financing balances in the Markets and Securities Services segment, which showed a 6% decline in revenues. Corporate/Other revenues fell by 27% due to the wind-down of legacy assets.
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Operating expenses declined by 3% year-over-year as investments were more than offset by efficiency savings and the wind-down of legacy assets. However, credit costs rose by 7% reflecting volume growth and seasoning.
Allowance for loan losses was $12.3 billion at quarter-end, or 1.82% of total loans, compared to $12.4 billion, or 1.85% of total loans, at the end of the prior-year period. Total non-accrual assets declined 13% due to a drop in consumer and corporate non-accrual loans.
Citigroup’s end-of-period loans rose 1% to $682 billion from last year. Excluding the impact of foreign exchange translation, end-of-period loans increased 3% as 5% aggregate growth in Institutional Clients Group and Global Consumer Banking was partially offset by the continued wind-down of legacy assets in Corporate/Other.
Also read: Wells Fargo earnings results for Q1
The company’s end-of-period deposits were $1 trillion as of quarter end, an increase of 3% from the prior-year period. In constant-dollars, Citigroup’s end-of-period deposits grew 5%, driven by 8% growth in Institutional Clients Group as well as 2% growth in Global Consumer Banking.
Shares of Citigroup ended Friday’s regular session up 2.29% at $67.42 on the NYSE. Following the earnings release, the stock inched up 0.64% in the premarket session.