Citigroup 2Q Profit Up 24% As Loan-Loss Provisions Fall |
| Wall Street Journal - Jul 15, 2011 |
Citigroup Inc.'s (C) second-quarter profit jumped 24% as provisions for loan losses declined sharply from a year ago. But absent that boost, the bank struggled to increase profits in many businesses around the world.
Overall, Citi reported a profit $3.34 billion. At Citicorp, the core division that the bank wants to grow, revenue and profit fell -- and expenses rose. Revenue rose in consumer lending and in investment banking in Latin America and Asia, but even in those parts of the world profits fell.
Shares of Citi were recently up 2.7% in premarket trading to $40.08, as earnings outperformed analyst expectations.
Citi, which returned to profitability last year after intense struggles during the financial crisis, has recently lagged behind rivals in its capital markets business and surprised investors in the first quarter with a jump in expenses.
In the second quarter, overall costs increased 9%, to $13 billion, and expenses in Citicorp rose 10%, to $10 billion. Revenue for Citi overall fell 7%, to $21 billion, and revenue at Citicorp fell 1%, to $16.3 billion.
Read Full Article from Wall Street Journal
- Posted: 2011-07-16 22:24:30
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