Citigroup earnings rise by 74%

19 October 2011

Citigroup has seen earnings increase by almost three-quarters to reach $3.8 billion, new figures released by the bank have revealed.

According to the financial institution, it earned the equivalent of $1.23 per share during the third quarter of 2011, a figure higher than the $2.2 billion or $0.72 per share seen in the same period the previous year.

The revenues for the third quarter of the year were boosted by a credit valuation adjustment (CVA) of $1.9 billion.

Vikram Pandit, Citi's chief executive officer (CEO), said: "Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results.

“We continued to manage our risk prudently while growing the businesses that are core to our strategy. We have reduced the size of Citi Holdings to 15 per cent of our balance sheet and further improved our financial strength.”

Meanwhile, Bloomberg reported that the investment bank is in the process of winding down its proprietary trading desk.

Citigroup is following in the footsteps of a number of institutions in shutting this part of its organisation as a response to the incoming Volcker Rule, which is expected to prevent banks from making investments with shareholder funds.

By Jim Ottewill

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