18 Oct 2011

Rise in quarterly profit reported by Citigroup

11:48 am on 18 October 2011

Citigroup has reported a 74% increase in its third quarter profit.

The US bank made $US3.8 billion in the three months to September, its seventh consecutive quarter of profit.

Earnings were helped by Citigroup setting aside less money to cover bad loans.

Revenues were also lifted by an accounting gain, termed a credit valuation adjustment, which lenders can make when the markets are turbulent.

Citigroup says revenue would have been 8% lower had it not made the change.

Separately, Wells Fargo, the biggest mortgage lender in the United States, says its profit rose 21% to $US4.1 billion due to a rise in customer deposits and growth in its loan portfolio.