As it continues to shed business units and streamline operations, Citigroup Inc. reported Tuesday that earnings more than doubled from a year earlier.
Revenue generated from the New York-based company’s brokerage and asset management businesses increased 25.5% to $340 million from the previous quarter, but sank from $1.6 billion a year earlier. In the past year, Citi [C] has been selling businesses, including its insurance and retail brokerage units as part of its effort to transform from a financial supermarket to a global bank that caters to wealthy customers.
As part of this effort, Citi announced
"We are proud of our first-quarter results but remain cautious about the environment, given the uncertain economic recovery and high unemployment in the U.S.," Vikram Pandit, Citi’s chief executive officer said in a press release. "Realistically, we do not expect our performance to follow an invariable trend-line upward."
For the first quarter overall, Citi reported its earnings rose to $4.43 billion, or 15 cents a share, from a profit of $1.59 million a year earlier. Revenue increased 3.7% to $25.42 billion. Analysts expected the company to barely break-even in the quarter with revenue of $20.77 billion, according to Thomson Reuters.
Revenue generated by Citi’s securities and banking arm declined 34% as profit fell 48%. This is in sharp contrast tom
Citi Holdings, which includes the assets that the company is in the process of selling, saw its loss from continuing operations decrease to $876 million from $5.49 billion.