Citi posts $1.3bn profit but revenues fall

City A.M. Reporter
Citigroup has posted a $1.3bn (£820m) quarterly profit, as losses on bad loans fell, but the bank missed estimates on its earnings as it struggled with a slump in revenue.

Its shares fell about 3.5 per cent to $4.95 in premarket trading.

Citigroup, the third-largest US bank, reported a net profit of four cents per share for the fourth quarter. That compared with a year-earlier loss of $7.6bn, or 33 cents per share.

Analysts on average expected it to post a profit of eight cents per share for the fourth quarter of 2010.

The bank reported revenue of $18.4bn, an increase from a year earlier but a six per cent drop from the third quarter.

Citigroup attributed the slump to a slowdown in its investment bank.

Citi took $45bn in US bailout funds during the financial crisis.

It was the fourth consecutive quarterly profit for Citigroup, and its first since the U. government finished selling off its stake in the company last month.

Shares of Citigroup closed at $5.13 on Friday – their highest close since August 2009.