Citigroup 74% jump in Q3 profits

Citigroup Inc on Monday reported its seventh straight quarterly profit, with a 74 % jump in Q3 earnings to $ 3.77 billion, as the financial services giant recorded lower losses from bad loans.
The entity had a net income of $ 2.17 billion in the July-September period of 2010, the US-based Citigroup said in a statement.
Citigroup's robust earnings lifted as the bank recorded lower losses from loans and made accounting gains related to its credit holdings.
Third quarter revenues of $ 20.8 billion were up slightly from $ 20.73 billion registered in the year-ago period.
Citigroup posted its seventh profitable quarter in a row after losing a total of $ 29.3 billion for 2008 and 2009 during the global financial crisis.
"Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results. We continue to manage our risk prudently while growing the businesses that are core to our strategy.
"We have reduced the size of Citi Holdings to 15 % of our balance sheet and further improved our financial strength. We are very well positioned as we help our clients navigate the world's current trends and key opportunities," Citi CEO Vikram Pandit said.
The bank's losses from bad loans fell by 41 % during the quarter to $ 4.5 billion as defaults fell from its credit card loans for Citibank credit cards.
As far as its India operation were concerned, the non-performing asset of the bank stood close to one % of the total loans at the end of September quarter.
NCL (net credit loss) of the Indian operation stood at 0.9 % in the July-September quarter against 0.8 % in the previous quarter.
Citicorp, the company's retail banking and commercial and investment-banking business, saw its net income jump by 32 %, from the prior year period to $ 4.6 billion, while revenues shot up by 9 % to $ 17.7 billion. In Asia, Citicorp's net income grew by 42 % to $ 1.41 billion and net revenues surged by 21 % to $ 4.28 billion.
Citi Holdings's net loss stood at $ 802 million compared to $ 1.14 billion in the year-ago period. The unit's revenues decreased 27 % from the prior year period to $ 2.8 billion as assets declined.
The bank said its regional consumer banking operations have witnessed a growth of 2 % to $ 8.26 billion and net income accelerated by 31 % to $ 1.61 billion.
Its international regional consumer banking revenue grew across all regions versus the prior year period, with Asia revenues growing 13 %, Latin America 9 % and Europe, the Middle East and Africa by 5 %.

Citibank reports maximum cases of debit/credit card frauds

Citibank has witnessed maximum 92 frauds of cloning of debit/credit cards or use of fake cards involving over Rs 1.89 crore from 2007-08 to December 2010.
"Largest number of such frauds belong to Citibank from 2007-08 to December 2010...RBI's committee has suggested a number of steps including replacing the magnetic strip on cards by a chip. All these aspects are being looked into," Finance Minister Pranab Mukherjee said in Lok Sabha during Question Hour.
Compensation to the victims, who lost money in these frauds, is another aspect which is being looked into by the banks.
Besides Citibank, other banks which reported such frauds are one each by Syndicate Bank, Standard Chartered, Punjab National Bank and Canara Bank in 2010 involving a total amount of less than Rs 23 lakh.
Bank of India reported one case of fraud in 2007-08 but the amount involved is huge at over Rs 1.92 crore.
Mukherjee said the Committee, headed by Executive Director, RBI has given various suggestions and a decision would be taken soon in this regard.
Besides, the RBI has also issued a series of instructions relating to Know Your Customer (KYC) to the banks so that identification could be authenticated before issuing a debit or credit card, the Minister said.
He said criminal investigations have also started against people involved in such frauds.
The RBI has issued a Master Circular on " credit card Operations of banks" recently advising the banks to set up internal control systems to combat frauds and to take pro-active fraud control and enforcement measures, Mukherjee said in his reply.
The Central bank has also advised banks to ensure that credit card operations were run on "sound, prudent and profitable" lines and fulfil "Know Your Customer" requirements, assess credit risk of customers, specify terms and conditions in clear and simple language and ensure prompt dispatch of bills.

Credit card companies offers good plans in festive season

What most spenders like about the festive season is the huge discounts, attractive schemes and offers most consumers durable companies come out on their products and services. With the economy picking up and the credit card usage increasing once again, card issuing companies too have tied up with various brands to offer tempting discounts, cash back offers, finance schemes.
And these offers are not just applicable on credit cards alone but are extended to some debit cards as well. “Apart from offering bonus points over and above the regular reward points earned on spending on the ICICI Bank credit cards and debit cards this season, we have come out with exclusive discounts on lifestyle and electronics too, “ says an ICICI spokesperson.
During the coming week, when you go shopping make sure you corner those extra savings and rewards that your credit card can offer you.
Apparel: You can avail discounts of up to 10% if you swipe your HSBC credit cards and Axis bank to purchase clothes. HSBC, for instance, has come out with festive scheme — Happy Swipes, where its credit and debit cardholders are eligible for cash back of 5% on making any purchase from Fabindia and Jashn stores on a minimum transaction of Rs 2,500 and Rs 5,000, respectively.
In case you wish to pick something from Star Bazaar this season, you can avail 5% cash back on a minimum spend of Rs 1,500. Under the cash back offer, the money gets credited to your account after the purchase has taken place. Similarly, by making a minimum purchase of Rs 3,000 on your Axis bank credit or debit card, you can avail additional 10% discount on purchase of any apparel at Central and Pantaloon outlets.
Dining: There is something for your palate too. As an American Express cardholder, if you book a flight to Hong Kong through Cathay Pacific Airline this month, and can participate in the “Hong Kong Wine and Dine Festival”, which is being organised from October 28 to October 31, you would get a free wine pass. However, if you travel first or business class (card), you would receive 5 wine tokens in addition to it.
Travel: If you are in a holiday mood this season, make sure you book tickets online. Several credit card issuers like HSBC and SBI have tied up with online travel portals like makemytrip.com, ezeego1.com for cash back offers of up to 30% on booking through them.
Under IRCTC and SBI card tie-up, you are eligible for refund up to 17% on all hotel and railway bookings, if the transaction is worth Rs 7,500 and above. Also, you can earn discounted tickets this season by using your card. Under the ‘Bonus Pe Flying Bonus’ offer by SBI cards, you can earn one discounted Kingfisher airline ticket if you swipe your card for purchase worth between Rs 60,000-one lakh.
Any purchase above Rs 1 lakh can get you two such tickets. “These offers are for both new as well as existing cardholders, provided the new cardholders have enrolled within the offer period,” says Abhay Kumar Singh, CEO, SBI Card. Similarly, you can save up to 10% on the base fare of your GoAir ticket by using your HSBC credit or debit card.
For your city travel you can make use of your Indian Oil Citibank credit card wherein you will get free fuel worth Rs 300 (maximum Rs 600) on every spend of Rs 30,000 on the card. The free fuel would be credited as Turbo Points to your card and will reflect in your credit card statement. The scheme, which has been running under its special offer is valid till the end of November.