Citigroup profits rise

22 January 2007

Fourth quarter profits at Citigroup rose by 3.2 per cent with recorded net income at $5.13 billion.

Revenue growth was recorded across all four main business lines, although net income fell as expenses grew faster than revenue.

Revenue rose seven per cent in the fourth-quarter to $23.8 billion, however, operating costs increased 23 per cent to $14 billion.

Charles Prince, Citigroup chairman and CEO, said: "Our 2007 priorities are clear: generating sustainable growth in US consumer, growing international consumer, corporate and investment banking and wealth management businesses more quickly, focusing sharply on expense management, and remaining highly disciplined in credit management.

"We will continue to invest to integrate our businesses and expand our reach, while at the same time taking a thorough review of our entire expense base to ensure that we operate as efficiently and effectively as possible."

Over the last quarter Citigroup made five acquisitions; leading a consortium to take 85 per cent of Guangdong Development Bank in China; buying Grupo Financiero Uno and Grupo Cuscatlan in Central America; acquiring UK consultancy firm Quilter; and, taking a 20 per cent stake in Turkish bank Akbank.

The company also announced a ten per cent increase in common dividend to a quarterly rate of $0.54 per share.

Mr Prince said: "This year marks the 22nd year in a row that Citigroup has raised its dividend, reflecting our continued commitment to enhancing returns to our shareholders."

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