Citigroup profit tops expectations

first_img Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen Herald John Dunne Citigroup profit tops expectations Tags: NULL More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comBiden received funds from top Russia lobbyist before Nord Stream 2‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comcenter_img Monday 18 October 2010 9:57 am Citigroup reported a better-than-expected quarterly profit on Monday as credit losses slowed and the bank set aside much less money to cover bad loans.Analysts said the results were mixed. Revenue rose slightly from a year earlier but fell from the second quarter, and the bank dipped into reserves to cover bad loans. Investors expressed concerns about how a widening foreclosure crisis could affect the bank’s earnings.“Earnings are OK and revenues are light, but the key will be their comments on foreclosures,” said Michael Holland of Holland & Co in New York.In the past month, US government officials have launched probes into the banking industry’s foreclosure practices following allegations that thousands of home foreclosures may have been illegal because they were improperly documented.Citigroup has repeatedly said its document review process is sound, and it has declined to follow large rivals, including Bank of America Corp and JPMorgan Chase and Co, in suspending foreclosures.Like stronger competitor JPMorgan, Citigroup beat third-quarter earnings expectations in part by releasing money it had set aside to cover bad loans.Analysts, who tend to discount earnings powered by reserve releases as “low-quality,” have questioned how bank profits can keep growing if a sluggish economy results in low loan demand and relatively high credit losses.“It’s a problem for all the banks now – they have trouble raising revenues,” said Matt McCormick, portfolio manager, Bahl & Gaynor Investment Counsel Inc.“Reducing loan loss reserves is not something you can do indefinitely – eventually, they’ll get to the point where they’ll say, ‘We can’t keep going down this path.’”The third-largest U.S. bank by assets posted a third-quarter profit of $2.2bn (£1.4bn), or seven cents per share, compared with a year-earlier loss to shareholders of $3.2bn, or 27 cents per share.On an ongoing basis, excluding an $800m pre-tax loss on the sale of its student lending operations, Citigroup earned $2.6bn, or eight cents per share.Revenue was the lowest of any quarter this year at $20.7bn.Citigroup, which is still 12 per cent owned by the US government, has recovered from the worst of the losses that forced it to take three bailouts in 2008 and 2009. But like its rivals, it has struggled to make new loans this year. Show Comments ▼ whatsapp whatsapplast_img

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