Monday, October 17, 2011

Citi Profit Rises 74%, Pounds Estimates

Citigroup, the third-biggest U.S. bank, said profit rose 74 percent, beating analysts’ estimates on a $1.9 billion accounting gain and a reduction in losses tied to soured loans, according to Bloomberg.
Net income for the third quarter was $3.77 billion, or $1.23 a share, compared with $2.17 billion, or 72 cents, in the same period a year earlier, the New York-based bank said today in a statement. The average estimate of 25 analysts surveyed by Bloomberg was 82 cents. Excluding the accounting benefit, earnings per share were 84 cents.

Citi’s credit-valuation adjustment, or CVA, mirrored a $1.9 billion gain by JPMorgan Chase & Co. (JPM) last week. The benefit helped Citigroup CEO Pandit, 54, weather a quarter in which its shares tumbled 38 percent amid concern revenue from trading and investment-banking would drop because of Europe’s debt crisis and the U.S. debt-ceiling fight. Excluding the accounting adjustment, revenue dropped 8 percent…

Want more? Check out http://www.bloomberg.com/news/2011-10-17/citigroup-profit-rises-74-beats-estimates-on-accounting-gain.html

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