Citigroup's net income rose 24 percent, as losses from bad loans fell 35 percent during the quarter. Consumer loans at Citigroup increased by 11 percent.
Mark Lennihan / AP / File
The New York bank says losses from bad loans fell 35 percent during the quarter to $5.4 billion. That allowed the bank to release $2 billion from its loan loss reserves and count it as income. More of the bank's credit card and mortgage loan customers also paid on time. Consumer loans that were delinquent by 90 days or more stood at $9.9 billion, down 46 percent compared with the same period last year.
Net income rose 24 percent to $3.3 billion, or $1.09 cents per share, on revenue of $20.6 billion. That compares to net income of $2.7 billion, or 90 cents per share, during the same quarter last year. Citigroup's earnings per share was adjusted to account for a reverse split, where 10 Citi shares were exchanged for one this May.
Analysts surveyed by FactSet had predicted Citigroup would earn 96 cents per share.
"We produced growth in both loans and deposits in Citicorp," said CEO Vikram Pandit.