Can Citigroup's results be sustained?

[ShockediSay]

Source: Reuters

It may be that Citigroup is returning to profitability, but some analysts wonder whether this quarter's performance can be repeated.

Citigroup Inc (C.N) benefited from a number of one-time items, such as selling its remaining position in Brazilian credit card processor Redecard SA (RDCD3.SA) for $704 million, $250 million of litigation reserve releases and $110 million of tax benefits related to resolving an audit.

Add another $2.5 billion accounting gain from adjusting derivative values as the company's credit quality deteriorated and Citigroup's $1.59 billion net income before preferred share dividends quickly turns into a loss.

Meanwhile, the bank's allowance for loan losses is growing, but not as fast as the company's nonperforming loans, leaving some investors to wonder if the bank is setting aside enough money to cover future losses, known as reserving.



Read more: http://www.reuters.com/article/ousiv/idUSTRE53G62Q20090417

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It wasn't sustainable in the first place, but all you gotta
do is pay the bonuses to the accountants &others, to get the
numbers you want.

It's that simple.

[dkofos]

1. Sustained?? I don't even believe they are legitimate.

[dixiegrrrrl]

2. "....accounting gain from adjusting derivative values.."

Man, the banks are really trying to revive the dead horse, aren't they?

Oh...btw, everybody...
I am a ....gazillionaire.
Says so, right here:

Gazillionaire.

See?

Anybody need some money?

[notesdev]

3. You mean its losses?

Of course they can be sustained. And it is highly likely they will accelerate, and you and I will be the suckers holding the bill.