Helped by the acquisition of ABN AMRO Mortgage Group Inc., Citigroup Inc.'s mortgage servicing portfolio pushed past a half trillion dollars while its loan production climbed higher.
First quarter real estate originations were $39.6 billion, according to a financial supplement to the New York company's first quarter earnings announcement. Production was higher than $35.3 billion in the fourth quarter and $32.4 billion a year earlier.
The financial conglomerate's third party servicing portfolio ended March at $580.2 trillion, soaring from $357.8 billion. The latest numbers reflect the recent acquisition of ABN AMRO's North American residential lending operations.
Net earnings during the first quarter were $5 billion, off from $5.1 billion in the fourth quarter and the lowest of the past five quarters, according to the announcement.
"Higher credit costs reflected increased net credit losses and an increase in loan loss reserves due to portfolio growth, seasoning, and increased delinquencies in second mortgages," Citi said. "The net credit loss ratio in real estate lending increased 14 basis points to 0.33%. "