Citigroup shares up on profits announcement

<p>The US bank insisted it had a difficult quarter.</p>

The share price of Citigroup rose yesterday (April 14th) following the release of the latest financial results by the US bank.

It announced that it made profits of $3.94 billion (£2.3 billion) in the first three months of 2014, although the bank insisted it had been a "difficult" quarter for the company.

Net income was also up by four per cent on the previous year, while the results showed that profits at Citigroup were helped by the narrowed losses on troubled assets that are held by Citi Holdings.

Chief executive Michael Corbat stated that Citigroup has been working more closely with the Federal Reserve in the US after the bank failed a stress test by the body.

He said: "Despite a quarter that was difficult for our company, we delivered strong results. Both our consumer and institutional businesses performed well and we grew both loans and deposits while holding the line on our expenses. We reduced our deferred tax assets more than any other quarter since the crisis and drove Citi Holdings closer to break even."

Citi Holdings

Results revealed by Citigroup were boosted by the news losses have been cut at Citi Holdings in the last 12 months. The data showed a reduction to $284m from $804m a year earlier.

Mr Corbat added: "We are committed to bringing our capital planning process to the highest possible standards, befitting an institution of our global reach. I will dedicate whatever resources and make whatever changes necessary to achieve this critical goal."

The bank's chief executive also pointed out the $4 billion in net income recorded by Citigroup helped it to generate $6 billion in regulatory capital during the quarter. It was noted that this also increased its estimated Tier 1 Common ratio to 10.4 per cent on a Basel III basis.

Following the release of the latest financial results at the bank, the share price of Citigroup rose by 4.3 per cent on the New York Stock Exchange during yesterday's trading session. It then increased by a further 0.06 per cent during after-hours trading in the US.

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