(Bloomberg) - Citigroup Inc., the third-biggest U.S. bank, said first-quarter profit rose 30 percent as revenue from fixed-income trading and investment banking exceeded analysts’ estimates.
Net income was $3.81 billion, or $1.23 a share, compared with $2.93 billion, or 95 cents, in the same period last year, the New York-based lender said today in a statement. Profit was $1.29 a share excluding an accounting adjustment. The average estimate of 23 analysts surveyed by Bloomberg was $1.17 a share in adjusted earnings.
Chief Executive Officer Michael Corbat, 52, who oversaw his first full quarter since replacing Vikram Pandit in October, is firing workers and closing branches as he seeks to make Citigroup more efficient. Bond-trading and investment-banking revenue was aided by a decline in reserves for loan losses, which bolstered earnings.
“It is critical that Citi be viewed as an indisputably strong and stable institution and we made progress towards that goal,” Corbat said in the statement. “The environment remains challenging and we are sure to be tested as we go through the year.”
Revenue increased to $20.5 billion from $19.4 billion in the same quarter last year. Excluding accounting adjustments, revenue was $20.8 billion. The average estimate of 16 analysts surveyed by Bloomberg News was $20.2 billion.
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