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Citigroup quarterly profit rises 29 percent

Citigroup Inc. on Thursday said first-quarter profit rose 29 percent, more than analysts expected, on double-digit growth in consumer and investment banking and all other major product lines.
/ Source: Reuters

Citigroup Inc. on Thursday said first-quarter profit rose 29 percent, more than analysts expected, on double-digit growth in consumer and investment banking and all other major product lines.

The world's No. 1 financial services company, which is based in New York, said net income rose to $5.27 billion, or $1.01 per share, from $4.1 billion, or 79 cents per share, a year earlier.

Analysts polled by Reuters Research on average had forecast profit of 95 cents per share. Revenue rose 16 percent to $21.49 billion.

Expenses rose 11 percent from a year earlier to $10.64 billion. Assets rose 16 percent to $1.32 trillion.

Chief Executive Charles Prince, who took over the CEO role from Chairman Sanford "Sandy" Weill on Oct. 1, said results "reflect a focus on increasing customer volumes while maintaining expense discipline and improving credit performance" as economies worldwide improve.

Profit in Citigroup's global consumer business rose 21 percent to $2.58 billion. Retail banking income rose 21 percent to $1.12 billion, credit card income rose 37 percent to $980 million, and consumer finance income rose 13 percent to $567 million.

Citigroup bought Sears, Roebuck & Co.'s $29 billion card portfolio in the fourth quarter.

Profit at Citigroup's corporate and investment bank rose 22 percent to $1.71 billion. Capital markets and banking income rose 23 percent to $1.48 billion, and transaction services income rose 23 percent to $234 million.

Global investment management profit rose 22 percent to $551 million. This included increases of 18 percent in life insurance and annuities, 27 percent at the private bank, and 27 percent in asset management. Private client services profit rose 55 percent to $251 million.

Profit from international operations, meanwhile, rose 32 percent to $1.61 billion. This included increases of 49 percent in Asia; 24 percent in Europe, the Middle East and Africa; 36 percent in Latin America, and 14 percent in Japan.

Citigroup shares closed Wednesday at $50.95 on the New York Stock Exchange. They have risen 5 percent this year.