(18 July 2011 – Global) Citigroup had a hard second-quarter, although profit jumped 24 percent, many of its businesses around the world struggled.The profit report is mainly due to a US$2 billion (A$1.8 billion) reserve release and improved credit, overall Citi reported a profit of US$3.34 billion.
Revenue rose in consumer lending and in investment banking in Latin America and Asia and loans grew broadly.
The falling US dollar and rising legal costs took a toll. But Citi is also ‘in investment mode,’ chief financial officer John Gerspach said during a conference call with reporters.
Those investments –in new products, branches, technology and marketing — are starting to pay off, and profits, particularly in Asia and Latin America, should improve in the second half, he said.
Citi returned to profitability last year after surviving the financial crisis due to $US45bn in government bailout funds.