Citigroup Q2 profit rises to $4.8 billion

NEW YORK: Citigroup has reported a big jump in second-quarter earnings on much lower legal costs and slightly higher revenues.
Earnings for the quarter ending June 30 were for $4.8 billion, up from just $181 million in the year-ago period.
The 2014 quarter was marred by a $3.7 billion legal charge to settle mortgage securities litigation.
Adjusted earnings translated into $1.51 per share, better than the $1.34 projected by Wall Street analysts.
Revenues rose 0.2 percent to $19.47 billion.
Citigroup suffered a modest drop in its bond trading division and slightly lower investment banking revenues due to lower corporate advising on mergers and other transactions. Those declines were partially offset by higher debt underwriting revenues.
In its global consumer banking division, revenues fell 4.4 percent to $8.5 billion, with higher North American revenues and lower international sales.
Results in this business were boosted by a 10 percent drop in operating expenses to $4.6 billion following efficiency moves.
“Our results for the quarter show very balanced performance across our business lines,” said Citigroup chief executive Michael Corbat in a statement.
“We grew loans and deposits in constant dollars in Global Consumer Banking, while also gaining wallet share among target clients in our Institutional Clients Group.”