Citigroup profits exceed estimates

Bradley Keoun The Boston Globe 04/17/2009 19:44

Citigroup announced first-quarter profits of $1.6 billion yesterday on trading gains and an accounting benefit. (Mario Tama/Getty Images)

NEW YORK - Citigroup Inc., which was rescued with $45 billion in taxpayer funds, ended a five-quarter losing streak with a $1.6 billion profit on trading gains and an accounting benefit for companies in distress.

The first-quarter profit compared with a net loss of $5.11 billion, or $1.02 a share, a year earlier, the bank said. On a per-share basis, the bank reported an 18-cent loss because of costs related to preferred dividends. The average estimate of 13 analysts surveyed by Bloomberg was a loss of 32 cents.

Citigroup investors hadn't seen a profit since before chief executive Vikram Pandit took over in 2007. While the bank cut compensation costs and took fewer write-downs, it could not halt rising delinquencies on home and credit card loans.

Citigroup benefited from higher fixed-income trading revenue that also bolstered earnings at Goldman Sachs Group Inc. and JPMorgan Chase & Co.

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