Citigroup surprised Wall Street Friday with a $4.3 billion profit in the second quarter.
But the results were boosted largely by a $6.7 billion after-tax gain related to the completion of its sale of a majority of its Smith Barney wealth management division to Morgan Stanley, CNNMoney.com reports.
Meanwhile, citigroup reported second-quarter revenue for Citicorp's Regional Consumer Banking fell 17% for North America, 22% for Europe, Middle East and Africa, 23% for Latin America, and 14% for Asia.
Citigroup Inc. swung to a second-quarter profit on a $6.7 billion gain related to the combination of its Smith Barney brokerage operations with those of Morgan Stanley (MS).
The results masked a 7% revenue drop at its securities and investment-banking operations, while deposits rose 6% during the quarter and operating costs dropped 21% as Citigroup continues its effort to streamline its operations long criticized as bloated. Headcount fell 30,000, or 9.7%, during the quarter , Wall Street Journal reports.
At the same time, citigroup Inc. reported a quarterly profit Friday after a huge one-time gain from a joint-venture deal at its Smith Barney brokerage, but absent that gain, business remained a tough slog as the firm's credit costs rose 81% to $12.4 billion , MarketWatch reports.