Citigroup, the world's largest bank, has increased its profits in the first quarter of 2006 thanks to strong results from its investment banking arm and international banking services.
The major international bank improved its profits for the first three months of its current fiscal year by 3.6% as investments and overseas business more than offset disappointing domestic consumer returns.
Citigroup reported net income for the first quarter of 2006 of $5.64 billion, or $1.12 per share. Revenue rose 4.7%, to $22.2 billion. International earnings increased 47%, driven by record international revenues, which were up 19%.
Results include $846 million of compensation expense related to stock grants to retirement-eligible employees, and a $657 million tax benefit related to the resolution of a federal tax audit for the years 1999 through 2002.
Charles Prince, Citigroup’s chief executive, described the Q1 performance as pleasing when compared to a poor final quarter of 2005.
I am very pleased with our first quarter accomplishments, which included strong growth in client activity across many franchises. We are seeing the benefits from our investment spending, which helped generate record revenues in our international businesses and record revenues globally in our corporate and investment banking business. Strength in these franchises more than offset weaker results in our US consumer business, Mr Prince said.