Profits up 18% at Citigroup

23 July 2007

Citigroup has posted record second-quarter net profits of $6.23 billion - an improvement of 18 per cent compared with the year ago period.

The company's performance equated to earnings per share of $1.24 - representing a significantly better than expected return with Wall St analysts anticipating earnings of $1.13 per share.

Revenue, meanwhile, grew by 20 per cent to $26.6 billion.

Principal factors behind the improvement were growth in revenue from investment banking, which was up 28 per cent to $1.47 billion, and a 67 per cent hike in revenue from equity markets to $1.58 billion.

Citigroup chairman and chief executive Charles Prince said: "We have very clear priorities to drive growth and we are executing on all of them.

"We made excellent progress in expanding our business through targeted acquisitions, completing three international transactions, including an increase in our ownership of Nikko Cordial Corporation in Japan to 68 per cent."

Mr Prince added that the bank had cut one-third of the 17,000 jobs it announced were being eliminated in April as it seeks to control costs.

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