Home

A Vindicated Turkey, Now Investment Grade

For years, Turkey was looked at as that economy that could only be vindicated with full induction into the European Union. But it’s done quite well without that ribbon, thanks. Its stock market is surging and government borrowing costs are plunging. Foreign direct investors want in. Turkey ca...

Read more...

SNC's Space Systems Dream Chaser Flight Vehicle Arrived at NASA

EDWARDS, Calif., May 15, 2013 /PRNewswire-USNewswire/ -- Sierra Nevada Corporation's (SNC) Space Systems Dream Chaser flight vehicle arrived at NASA's Dryden Flight Research Center in Edwards, Calif., Wednesday to begin tests of its flight and runway landing systems. The tests are part of p...

Read more...

Dream Chaser Begins Testing at NASA

The Dream Chaser space vehicle from the Sierra Nevada Corporation will begin testing of its flight and runway landing systems at NASA’s Dryden Flight Research Center in Edwards, California. The Dream Chaser is another commercially built spacecraft that is being built as part of NASA’s C...

Read more...

Turkish PM Attends Ceremony for Turkish-American Culture, Civilization Center

Turkish Prime Minister Recep Tayyip Erdogan on Wednesday attended a groundbreaking ceremony for the Turkish-American Culture and Civilization Center in Maryland. Speaking at the ceremony, Prime Minister Erdogan said that the multi-functional monument would be the honor of the (Turkish) nation. Erdo...

Read more...

New York Gets Turkish Flavour thanks to Istanbul 2020 for Turkish Day

Istanbul 2020 is helping bring the Grand Bazaar of Turkey – including its hospitality and cuisine – to New York’s Grand Central Station for the 32nd New York Turkish Day. The Federation of Turkish American Associations decked the Grand Central Terminal with Turkish decorations and...

Read more...

CURRENT ISSUE

Latest News

TurkAvenue News

Watch the latest video at <a href="http://video.foxbusiness.com">video.foxbusiness.com</a>

Enter Keyword(s) to Search

More popular

A Vindicated Turkey, Now Investment GradeA Vindicated Turkey, Now Investment Grade
2013-05-21 00:52:29 
For years, Turkey was looked at as that economy that could only be vindicated w...
Read more...
SNC's Space Systems Dream Chaser Flight Vehicle Arrived at NASASNC's Space Systems Dream Chaser Flight Vehicle Arrived at NASA
2013-05-21 00:44:53 
EDWARDS, Calif., May 15, 2013 /PRNewswire-USNewswire/ -- Sierra Nevada Corporat...
Read more...
Dream Chaser Begins Testing at NASA Dream Chaser Begins Testing at NASA
2013-05-16 22:37:25 
The Dream Chaser space vehicle from the Sierra Nevada Corporation will begin te...
Read more...

Previous Issue

Turkish Bank Sale Drags Citi's Net Down 12 Percent PDF Print E-mail
2012-07-16 15:39:10
NEW YORK (AP) - Citigroup's net income fell 12 percent in the second quarter partly due to a loss on the sale of its stake in a Turkish lender. The income of $2.9 billion was still better than analysts were expecting. Citi is one of the largest international banks in the world and its results are often seen as a gauge of how the global economy is doing. Investors are particularly concerned about recent signs of a slowdown in China and India, two large markets for Citi. Citi's consumer banking business in Asia and Latin American barely declined by less than one percent.

"We are largely an urban bank in Asia, and cities are growing," Vikram Pandit, Citigroup's CEO, said in a conference call with analysts. "Urbanization is a very powerful trend. Middle class is growing. People are coming in the cities. That's what drives our business."

In a separate conversation with journalists, Citi's chief financial officer, John Gerspach, said the strength in the dollar versus other currencies had negative impact on the bank's earnings from overseas.

Gerspach said the Mexican peso depreciated about 5 percent in the quarter and the Brazilian real about 11 percent. Without the effect of currency depreciations, Gerspach said, Citi's overseas business grew. Gerspach said Citi was excited about the opportunities for growth in those two countries, especially in credit cards.

As more of its customers paid back loans on time, Citi kept aside less for future losses. The bank reserved $27.6 billion at the end of the quarter, compared with $34.4 billion in the same period a year ago.

"Many markets are slowing down and we worry that it could hit the credit quality of customers," said Citi shareholder Gary Townsend, head of the investment firm Hill Townsend Capital. "Citi executives indicated that they don't see any discernible change and that is an important takeaway."

The bank drew down its current loan loss reserves by $984 million and took an accounting gain of $219 million because the value of its debt decreased. Both of those items padded earnings.

Citi lost $424 million on the sale of its one-tenth ownership stake in Akbank. Excluding that loss and the accounting gain, Citi's net income was $1 per share, exceeding the 89 cents expected by analysts surveyed by FactSet, a provider of financial data.

Revenue was $18.6 billion, down 10 percent from the year-ago quarter. Analysts expected $18.8 billion.

Citi's stock rose 18 cents to $26.82.

Market volatility in the second quarter related to the European debt crisis hurt Citi's earnings from investment banking, where revenue declined 21 percent to $854 million.

However, as interest rates hit record lows, more homeowners refinanced their mortgage loans or bought news houses.

Citi's retail banking revenues grew 32 percent to $1.6 billion from the second quarter 2011, largely due to higher mortgage revenues.

Over the weekend, Citigroup said it will not seek to increase its dividend this year but may seek permission to raise it in 2013.

"I believe we will be in good shape and have the capital to be able to do that by the end of the year," Pandit told the U.K.'s Sunday Telegraph in a rare interview. "That's a decision that will have to be taken with our regulators and we will have those conversations at the end of the year."

The bank did not ask the Federal Reserve for permission to raise its dividend last month, when it submitted its latest capital plan. Citi currently pays a token amount of 1 cent per share every quarter. Pandit had previously promised shareholders a higher dividend earlier in the year.

The Fed in March said the bank did not have enough capital to raise its dividend and also withstand another financial crisis. That was a blow to Pandit, whose 2011 compensation package of $15 million for last year and $10 million retention pay was rejected by shareholders in an advisory vote the following month.
Comments (0)Add Comment

Write comment
You must be logged in to a comment. Please register if you do not have an account yet.

busy
 
< Prev   Next >
[ Back ]
 

Popular

 

Polls

Which is the best Turkish Restaurant in New York City?
 










Facebook Like Box

Who's Online

We have 2 guests and 1 member online

Entertainment

RestaurantsNY Goes Turkish In May, And Local Restaurants Participate In Turkish Restaurant Week

2013-05-16 21:31:54

article thumbnail Turkish-Americans celebrate their heritage this month with a week of restaurant discounts at participating eateries, a parade and festival, and an event at Borough...
+ Full Story

Another Articles
~TOA_BANNER

Research

More International Support Needed for Jordan to cope with Syrian refugees, Says UN Development Chief

+ Full Story
Other Researches

Technology