Citigroup 4Q 2012 Core Pretax Earnings up 70% and Annual 2012 Core Pretax Earnings up 22%

Citigroup Core Pretax Income in the 4Q 2012 was $2,643 mil, up a very robust 70% over the $1,557 mil earned in the 4Q 2011.

For the year 2012, Citigroup's Core Pretax Income was $15,925 mil, up a very nice 22% over the $13,047 mil earned in 2011.

Below here is a reconciliation of Citigroup's 4Q 2012 and 4Q 2011 Pretax Income as reported under US GAAP and its Core Pretax Income:

	4Q 2012	4Q 2011	%
	mils of $s	mils of $s	Increase
Pretax Income As Reported	1,130	1,089	4%
Adjustments
Repositioning Charges	1,028	428
Derivative Valuation Losses	485	40
Core Pretax Income	2,643	1,557	70%

And below here is a reconciliation of Citigroup's Annual 2012 and Annual 2011 Pretax Income as reported under US GAAP and its Core Pretax Income:

	Annual	Annual	%
	2012	2011	Increase
	mils of $s	mils of $s	(Decrease)
Pretax Income As Reported	7,936	14,624	-46%
Adjustments
Repositioning Charges	1,028	428
Derivative Valuation Loss (Gain)	2,330	(1,806)
Loss (Gain) on Sale of Minority Interests	4,631	(199)
Core Pretax Income	15,925	13,047	22%

Citigroup has done a remarkable job recovering from the depths of the 2008 financial meltdown, where it registered a Pretax Loss of $52 bil in 2008.

Citigroup owes a deep amount of gratitude to both the Obama Administration and the US Fed for creating a very favorable financial environment for Citigroup to now thrive.  In particular, departing Treasury Secretary Tim Geithner did a fantastic job in helping Citigroup and many other financial corps, which were on life support back in 2008 and early 2009.

However, it should be pointed out that Citigroup's Core Pretax Income of $16 bil in 2012 was barely over half of the $29 bil of Pretax Earnings it generated in both 2005 and 2006.