Chapter 5.2.3. Net Income 2005
If we zoom in the income statement per product segment for 2005, the Citigroup story starts to be less exciting (see Table 5 in Appendixes). The two biggest businesses, Global Consumer and Corporate and Investment Banking showed no growth, if not decline in profits. The major growth in net income came from decreasing settlement payments and gain on the sale of the Travelers Life and Annuities business. Wealth Management demonstrated a mere 3% growth. The only star of 2005 was Citigroup Alternative Investments. However, the company cannot rely on the alternative businesses if bad years come.
With such financial highlights, Citigroup will have a difficult task persuading its stakeholders once the reporting must be done for 2006.