Citigroup Hit By MSR Issue
Citigroup said second-quarter revenue increased by 10% from a year earlier, with net income totaling $5.27 billion, or $1.05 per share. Net income was up 3.8% per share.
Citigroup said its rate of return on common equity was 18.6%.
Fixed-income revenue growth was one of the company's highlights, rising 51% from a year earlier.
U.S. consumer revenue, which includes mortgage banking, increased 1%, with net income from the U.S. consumer group rising 11%. Citigroup said that revenue from U.S. consumer lending was affected by a decline in net mortgage servicing revenue being largely to blame.
Citigroup said it opened a record 270 new branch offices, including 74 in the U.S. and 196 internationally. Year-to-date, the company has opened 110 in the U.S. and 398 internationally.
Citigroup's chairman and CEO, Charles Prince, said in a news release that consumer lending achieved strong growth "despite headwinds from spread compression." (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com