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Citigroup posts $2.2 bn profit, tops expectations

Citigroup posts $2.2 bn profit, tops expectations
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First Published: Mon, Oct 18 2010. 05 59 PM IST
Updated: Mon, Oct 18 2010. 05 59 PM IST
New York: Citigroup Inc reported a third consecutive quarterly profit on Monday, slightly beating expectations, as losses slowed and the bank set aside less money to cover bad loans.
But Citigroup had trouble generating new business during the quarter as low trading volumes cut into its securities and banking operations. Revenue rose slightly from a year earlier but were the lowest of any quarter this year at $20.7 billion.
“Earnings are OK and revenues are light, but the key will be their comments on foreclosures,” said Michael Holland of Holland & Co in New York.
The bank’s shares were up 1.8% at $4.02 in pre-market trading after closing at $3.95 on Friday.
The third-largest US bank by assets posted a third quarter profit of $2.2 billion, or 7 cents per share, compared with a year earlier loss to shareholders of $3.2 billion, or 27 cents per share.
Analysts on average had expected a profit of 6 cents a share, according to Thomson Reuters I/B/E/S.
On an ongoing basis, excluding an $800 million pre-tax loss on the sale of its student lending operations, Citigroup earned $2.6 billion, or 8 cents per share.
Citigroup, which is still 12% owned by the US government, has recovered from the worst of the losses that forced it to take three bailouts in 2008 and 2009. But like its rivals, it has struggled to make new loans this year.
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First Published: Mon, Oct 18 2010. 05 59 PM IST
More Topics: Company Results | Citigroup | Earnings | revenue | Bank |