Citi profits up 74% from last year
Citigroup (C) reported net income of $3.77 billion in the third quarter, or $1.23 per share, up 74% from about $2.17 billion, or 72 cents a share, one year ago. Revenue for the three months ended Sept. 30 inched higher to about $20.8 billion, including a gain of $1.9 billion from credit valuation adjustments. Excluding the gain, third-quarter revenue fell 8% to $18.9 billion from $20.74 billion a year ago. The bank cut its loan loss reserve to $1.4 billion, down from $3.4 billion one year ago. Tier 1 common capital stood at $115.3 billion or 11.7%. Citi continued cutting its legacy Citi Holdings assets, reducing the portfolio to $289 billion in the third quarter, a 31% decrease from last year. At the end of the quarter, Citi Holdings represented 15% of the bank's balance sheet. Revenues in the bank's North American business totaled $3.4 billion, down 9% from last year due to a decline in credit card balances. The bank originated fewer mortgages as well, and the bank said profits shrank on those it did write during the third quarter. "Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results," said Citi CEO Vikram Pandit. "We continued to manage our risk prudently while growing the businesses that are core to our strategy." Write to Jon Prior. Follow him on Twitter @JonAPrior.