Citigroup Inc., the nation's largest financial services firm, on Monday reported third-quarter earnings rose 35 percent, including a hefty $2.12 billion (Ђ1.77 billion) gain from the sale of life insurance and annuities.
Citigroup said third quarter income grew to $7.14 billion (Ђ5.95 billion), or $1.38 (Ђ1.15) per share. Last year, Citigroup reported net income of $5.31 billion, or $1.02 per share. Earnings from continuing operations slipped 1 percent to $4.99 billion (Ђ4.16 billion), or 97 cents (81 euro cents) per share, in the latest quarter.
Besides the one-time gain, the latest quarter included costs from Hurricane Katrina of $222 million (Ђ185 million), or 4 cents per share, the company said.
Revenue increased 15 percent to about $21.5 billion (Ђ17.92 billion) from $18.74 billion, the AP reports.
Analysts expected Citigroup to earn 99 cents (83 euro cents) per share on revenue of $20.47 billion (Ђ17.1 billion), according to a Thomson Financial poll.
"Corporate and investment banking revenues increased 35 percent, including record revenues in transaction services and strong revenue growth across fixed income markets, equity markets, and investment banking," said Chief Executive Charles Prince in a statement. "In Smith Barney, revenues grew 13 percent. We also continued to generate robust customer volume growth in our international consumer franchise, where revenues increased 10 percent."
Several years ago, a prominent Indonesian businessman who now resides in Canada, insisted on meeting me in a back room of one of Jakarta's posh restaurants. An avid reader of mine, he 'had something urgent to tell me', after finding out that our paths were going to be crossing in this destroyed and hopelessly polluted Indonesian capital.