Citigroup 74% jump in Q3 profits

Citigroup Inc on Monday reported its seventh straight quarterly profit, with a 74 % jump in Q3 earnings to $ 3.77 billion, as the financial services giant recorded lower losses from bad loans.

The entity had a net income of $ 2.17 billion in the July-September period of 2010, the US-based Citigroup said in a statement.

Citigroup's robust earnings lifted as the bank recorded lower losses from loans and made accounting gains related to its credit holdings.

Third quarter revenues of $ 20.8 billion were up slightly from $ 20.73 billion registered in the year-ago period.

Citigroup posted its seventh profitable quarter in a row after losing a total of $ 29.3 billion for 2008 and 2009 during the global financial crisis.

"Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results. We continue to manage our risk prudently while growing the businesses that are core to our strategy.

"We have reduced the size of Citi Holdings to 15 % of our balance sheet and further improved our financial strength. We are very well positioned as we help our clients navigate the world's current trends and key opportunities," Citi CEO Vikram Pandit said.

The bank's losses from bad loans fell by 41 % during the quarter to $ 4.5 billion as defaults fell from its credit card loans for Citibank credit cards.

As far as its India operation were concerned, the non-performing asset of the bank stood close to one % of the total loans at the end of September quarter.

NCL (net credit loss) of the Indian operation stood at 0.9 % in the July-September quarter against 0.8 % in the previous quarter.

Citicorp, the company's retail banking and commercial and investment-banking business, saw its net income jump by 32 %, from the prior year period to $ 4.6 billion, while revenues shot up by 9 % to $ 17.7 billion. In Asia, Citicorp's net income grew by 42 % to $ 1.41 billion and net revenues surged by 21 % to $ 4.28 billion.

Citi Holdings's net loss stood at $ 802 million compared to $ 1.14 billion in the year-ago period. The unit's revenues decreased 27 % from the prior year period to $ 2.8 billion as assets declined.

The bank said its regional consumer banking operations have witnessed a growth of 2 % to $ 8.26 billion and net income accelerated by 31 % to $ 1.61 billion.

Its international regional consumer banking revenue grew across all regions versus the prior year period, with Asia revenues growing 13 %, Latin America 9 % and Europe, the Middle East and Africa by 5 %.

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