RIYADH, 19 July — Saudi businessman Prince Alwaleed ibn Talal has increased his stake in Citigroup by $500 million, a statement by his company said yesterday.
Kingdom Holding, which manages the prince’s worldwide investments, said his stake in the US financial services giant now exceeded $10 billion.
In March, Prince Alwaleed also bought shares worth $500 million in Citigroup, in which he is the largest shareholder, the statement said. Citigroup on Wednesday topped estimates for its second-quarter earnings despite a big writeoff for its WorldCom bonds. Net income was $4.08 billion, 15 percent up from last year, or 78 cents per share. Total revenue was $22.35 billion, up 22 percent from the same quarter last year.
Moreover, Citigroup’s total equity, including trust preferred securities reached $93 billion (SR 350 billion), and the company’s return on common equity was 20% for the second quarter.
With this success rate, Citigroup has made more money than any other company in the first quarter making it the most profitable company in the world.
The Kingdom Holding statement said Citigroup continued to occupy the No.1 position in fixed income. Consumer finance income increased 15 percent driven by a decline in expenses in North America, largely related to the Associates integration. The business now serves over 108 million accounts in 47 countries, increasing income by 34 percent.
Prince Alwaleed commented on the occasion, saying: "These results reflect Citigroup’s power due to its strong international presence. Its diverse banking and investment services that it is provided to its consumers globally makes it more competitive and diversifies its income.
This is in addition to its successful management that weathered global economic crises."
