Citigroup records $2.9 billion 2Q profit

Banking giant Citigroup (C) posted a second-quarter profit of $2.95 billion, or 95 cents a share, on revenue of $18.6 billion as the bank noted growth in both loans and deposits Monday.

Comparatively, the bank posted net income of $2.93 billion on revenue of $19.4 billion in the first quarter. However, the company’s earnings fell from $3.3 billion from last year and revenue declined from $20 billion.

While Citigroup annual earnings are down, the bank beat the average analyst estimate of earnings in the range of 89 cents a share. Its ability to best analyst opinions pushed Citi’s stock higher during early morning trading.

Still, the company reported positive activity across the board despite feeling some financial impact from a net loss on the sale of its stake in Akbank T.A.S. and credit valuation adjustments on derivatives.

The mortgage segment helped drive retail banking revenue, which grew 32% overall to $1.6 billion from the second quarter of 2011, the bank reported.

The company’s loan loss reserves release is down 50% from last year at $984 million in 2Q.

Citigroup loans grew 10% from the previous year hitting $527 billion. Meanwhile, Citi’s loan holdings declined 24% from last year to $128 billion.


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