Citigroup’s big profit

NEW YORK – Citigroup Inc., America’s largest financial institution, said yesterday its third-quarter earnings rose 35 per cent, including a hefty US$2,12 billion (N$13,78 billion) gain from the sale of its life-insurance and annuities business.

Citigroup said net income totalled US$7,14 billion or US$1,38 per share, in the third quarter, up from US$5,3 billion or US$1,02 per share a year earlier. Excluding the sale of Travelers Life & Annuity to MetLife Inc., which closed in the July-September period, and a handful of special charges, Citigroup’s income from continuing operations was 97 cent per share in the third quarter, up from 96 US cents a year earlier.The special charges included US$222 million in costs related to Hurricane Katrina, US$124 million in credit-card losses because of the recent rush of bankruptcies and a US$94 million increase in corporate loan loss reserves.The Katrina costs cut earnings by foru cents per share, Citigroup said.Revenue increased 15 per cent to nearly US$21,5 billion in the third quarter from US$18,74 billion a year earlier.Charles Princes, the company’s chief executive officers, said in a statement accompanying the results that diversity helped buoy earnings despite the special charges.”Our results reflect excellent performance in our corporate and capital markets driven businesses,” he said.”Corporate and investment banking revenues increased 35 per cent, including record revenues in transaction services and strong revenue growth across fixed income markets, equity markets, and investment banking,” Prince said.”In Smith Barney, revenues grew 13 per cent.We also continued to generate robust customer volume growth in our international consumer franchise, where revenues increased 10 per cent.”This, he said, “offset sluggish revenue growth” in the US banking division, which continued to feel the effects of a flattening yield curve – the result of rising short-term rates and comparatively low long-term rates.- Nampa-APExcluding the sale of Travelers Life & Annuity to MetLife Inc., which closed in the July-September period, and a handful of special charges, Citigroup’s income from continuing operations was 97 cent per share in the third quarter, up from 96 US cents a year earlier.The special charges included US$222 million in costs related to Hurricane Katrina, US$124 million in credit-card losses because of the recent rush of bankruptcies and a US$94 million increase in corporate loan loss reserves.The Katrina costs cut earnings by foru cents per share, Citigroup said.Revenue increased 15 per cent to nearly US$21,5 billion in the third quarter from US$18,74 billion a year earlier.Charles Princes, the company’s chief executive officers, said in a statement accompanying the results that diversity helped buoy earnings despite the special charges.”Our results reflect excellent performance in our corporate and capital markets driven businesses,” he said.”Corporate and investment banking revenues increased 35 per cent, including record revenues in transaction services and strong revenue growth across fixed income markets, equity markets, and investment banking,” Prince said.”In Smith Barney, revenues grew 13 per cent.We also continued to generate robust customer volume growth in our international consumer franchise, where revenues increased 10 per cent.”This, he said, “offset sluggish revenue growth” in the US banking division, which continued to feel the effects of a flattening yield curve – the result of rising short-term rates and comparatively low long-term rates.- Nampa-AP