Citigroup has reported a net income for the first quarter of 2023 of $4.6 billion, on revenues of $21.4 billion, against a net income of $4.3 billion, on revenues of $19.2 billion for the first quarter of 2022. Banking revenues of $1.2 billion decreased by 38%, including gain/loss on loan hedges in the current quarter and the prior-year period. Excluding gain/loss on loan hedges, Banking revenues of $1.4 billion decreased by 21%, driven by lower revenues in investment banking and corporate lending. Citigroup’s end-of-period loans were $652 billion at quarter end, down 1% from the prior year.
Citigroup’s cost of credit was approximately $2.0 billion in the first quarter of 2023, compared to $0.8 billion in the prior-year period, reflecting a net build in the allowance for credit losses (ACL) for loans and unfunded commitments of $241 million and other provisions of $432 million, primarily driven by macroeconomic deterioration and growth in card revolving balances in PBWM. The higher cost of credit also reflected higher net credit losses, primarily driven by ongoing normalization in branded cards and retail services. US personal banking revenues of $4.7 billion increased by 18%. Branded cards revenues of $2.5 billion increased by 18%, primarily driven by the higher net interest income as card spend volumes increased by 9% and average loans increased by 15%.
