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Citigroup reports surge in second quarter profits | Citigroup reports surge in second quarter profits |
(about 2 hours later) | |
Citigroup has continued a strong second quarter for the biggest US banks. | Citigroup has continued a strong second quarter for the biggest US banks. |
It reported a net income of $4.2bn (£2.8bn) for the three months to the end of June, that's up 42% on the same period last year. | It reported a net income of $4.2bn (£2.8bn) for the three months to the end of June, that's up 42% on the same period last year. |
That comparison is flattered by a big, one-off charge taken by Citigroup in the second quarter of 2012. | That comparison is flattered by a big, one-off charge taken by Citigroup in the second quarter of 2012. |
The bank was also helped this year by a large reduction in the money set aside for loans going bad and an accounting benefit related to the bank's debt. | The bank was also helped this year by a large reduction in the money set aside for loans going bad and an accounting benefit related to the bank's debt. |
Excluding the accounting benefit and last year's charge, Citigroup net income increased 26% to $3.9bn. | Excluding the accounting benefit and last year's charge, Citigroup net income increased 26% to $3.9bn. |
Strong | Strong |
Michael Corbat, chief executive of Citi, said: "Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged." | Michael Corbat, chief executive of Citi, said: "Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged." |
Mr Corbat has been cutting costs since October, when Citigroup's board put him in charge after removing Vikram Pandit. | |
The bank's headcount was 253,000 by the end of the second quarter, down by 8 thousand compared to the same period of 2012. | |
As well as cost cuts Citigroup has been helped by its share trading business which reported sales of $942m (£626m) up almost 70% on last year. | |
Citigroup's results match those from its US rivals. | Citigroup's results match those from its US rivals. |
On Friday, JP Morgan recorded a profit of $6.5bn (£4.3bn) for the second quarter of 2013, up 31% from a year ago. | On Friday, JP Morgan recorded a profit of $6.5bn (£4.3bn) for the second quarter of 2013, up 31% from a year ago. |
Separately, Wells Fargo reported a 20% rise in quarterly profits to $5.27bn as it set aside less money for bad loans. | Separately, Wells Fargo reported a 20% rise in quarterly profits to $5.27bn as it set aside less money for bad loans. |
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