Citigroup Inc on Monday reported a stronger-than-expected 26 per cent rise in adjusted quarterly profit as stronger home prices reduced losses on mortgages and
bond trading revenue jumped, reports Reuters.
The biggest boosts in profit came from its securities and banking unit, where bond trading revenue rose 18 per cent, while stock trading revenue soared 68 per cent, and underwriting and advisory was up 21 per cent.
At the Citi Holdings unit, which houses businesses and assets the bank is looking to shed, the bank set aside less money to cover bad mortgages as the U.S. housing market showed signs of recovery.
Citigroup shares rose 2.6 per cent to $52.10 in early trading.
The results underscored how the bank is returning to normal after getting walloped during the financial crisis and needing three government rescues.
‘Citi is a restructuring story and it is an emerging markets story,’ analyst Fred Cannon of Keefe, Bruyette & Woods said before the company reported results.
Adjusted net income at the third-largest U.S. bank by assets rose to $3.89 billion, or $1.25 per share, in the second quarter, from $3.08 billion, or $1 per share, a year earlier.
Adjusted results excluded the positive impact of changes in the value of the company’s debt.
-With New Age input
