Citigroup second-quarter profit rises

Citigroup Inc., the world's largest bank by market value, yesterday said second-quarter profit rose four per cent, helped by growth in corporate and investment banking.

Net income for the New York-based company rose to $5.27 billion, or $1.05 per share, from $5.07 billion, or $0.97 a share, a year earlier.

Profit from continuing operations increased 11 per cent to $5.26 billion, Citigroup's second highest total ever. Revenue from continuing operations increased 10 per cent to $22.18 billion.

Analysts polled by Reuters Estimates on average forecast a profit of $1.05 per share on revenue of $22.34 billion.

Corporate and investment banking profit jumped 26 per cent to $1.72 billion, and revenue surged 31 per cent to $6.76 billion. Results were bolstered by revenue increases of 51 per cent in fixed income markets and 30 per cent in equity markets. Investment banking revenue jumped 24 per cent.

Citigroup also increased profit 11 per cent in its US consumer banking group, which has been struggling, although revenue rose just one per ent.

Return on common equity was 18.6 per cent. Citigroup shares closed Friday at $47.58 on the New York Stock Exchange.

The stock has fallen two per cent this year, compared with a two per cent increase in the Philadelphia KBW Bank.