Global Biz

Citigroup posts $2.2b profit, tops expectations

(Agencies)
Updated: 2010-10-18 22:32

A Citibank branch is seen in Washington in this January 19, 2010 file photo. Citigroup Inc reported a third-quarter profit of $2.2 billion on October 18, 2010. Picture taken January 19, 2010. [Photo/Agencies]

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.

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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 percent at $4.02 in premarket 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 percent 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.