Saturday, April 19, 2008

Citigroup - Capital Watch

Here are the updated capital ratios for Citigroup for the quarter ending 3/31/2008, after writedowns and adjustments. The data is from the 40 page supplement released with earnings last week.

Tier 1 Capital Ratio - 7.7%

Total Capital Ratio - 11.2%

Leverage Ratio - 4.3%

All three of these capital ratios strengthened slightly from the fourth quarter of 2007 due to significant capital raising by Citigroup.

Book value is at $20.73.

Other tidbits from the quarter:

1) Loans 90+ days past due as a percent of end of period loans is 2.08%. The net credit loss ratio is much higher at 3.82%. I am not sure what the official definition is of this metric. Both these ratios are from the Global Consumer Division - retail distribution.

2) All credit loss ratios moved up sequentially or year over year - the net credit loss ratio in the card division was 5.38%, and in the consumer lending division (real estate) was 1.72%. Loans 90+ days past due was 2.73%.

3) A surprise to me was in the student loan area, where the net credit loss ratio was a scant 0.22%, and loans 90+ days past due was high at 3.25%, but down year over year significantly.

4) U.S. commercial real estate is still holding up, with a net credit loss ratio of 0.37% and loans 90+ days past due of 0.69%. These ratios are up sequentially, but still not in a danger zone yet.

5) The net credit loss ratio in Japan for the quarter for credit cards was at a stunning 14.33%. I am not sure what is going on there, I always thought the Japanese were a thrifty people!!

6) Citigroup is now the proud owner of $1.5 billion in real estate.

I will tackle the bank's remaining exposure to sub prime and related investments in another post.

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