Citicorp net income increased to $3.5 billion, from $2.8 billion in the prior year period, primarily driven by the higher revenues as well as lower operating expenses and lower cost of credit.

Credit cards are where it is at for Citi, as the big bank continues its drive away from the mortgage business.

Citi-branded cards revenues of $2.2 billion increased 15%, as well as modest organic growth driven by higher volumes, according to its fourth quarter earning report.

The bank continues to expand access to cash for it's card customers.

Citibank customers can now access ATMs surcharge-free at virtually all Costco, CVS/pharmacy, and Target retail locations, according to another statement from yesterday. Additionally, surcharge-free ATM access is rolling out to Duane Reade stores and most Walgreens locations.

However, Citi retail banking revenues declined 4% to $1.3 billion, mostly reflecting lower mortgage revenues.

The report this morning shows a continued, gradual escape from the mortgage business.

In the third quarter, mortgage originations increased 2% from last quarter’s $6.4 million to $6.5 million. This is down, however, by 13% from last year’s $7.5 million.