Citigroup posts $1.3 billion quarterly profit
Citigroup Inc posted a USD 1.3 billion quarterly profit on Tuesday, as the third-largest US bank rounded off a year of recovery from the financial crisis.
January 18, 2011 / 19:38 IST
Citigroup Inc posted a USD 1.3 billion quarterly profit on Tuesday, as the third-largest US bank rounded off a year of recovery from the financial crisis.
"My guess is, Citi wishes they had more loan loss reserves that they could have released to get earnings. Eventually, you need real revenue growth if you're going to get profit growth, you can't just keep releasing reserves," said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor.The company reported a net profit of 4 cents per share for the fourth quarter, compared with a year-earlier loss of USD 7.6 billion, or 33 cents per share.Analysts on average expected Citigroup to post a profit of 8 cents per share for the fourth quarter of 2010, according to Thomson Reuters I/B/E/S.It was the fourth consecutive quarterly profit for Citigroup, and its first since the US government finished selling off its stake in the company last month.Shares of Citigroup closed at $5.13 on Friday -- their highest close since August 2009. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
