Citigroup beats estimates, net rises 74% on lower loan losses

Citigroup reported higher third-quarter earnings on Monday as the bank set aside less money to cover bad loans and recorded an accounting gain banks can take in turbulent markets. Citigroup, the third-largest US bank by assets, reported net income of $3.77 billion, or $1.23 per share, up from $2.17 billion, or 72 cents per share, a year earlier. The latest results included a pre-tax gain of $1.9 billion, or 39 cents per share, due to the bank’s widening credit spreads during the quarter. Excluding that gain, Citi earned $2.6 billion, or 84 cents per share. [caption id=“attachment_109929” align=“alignleft” width=“380” caption=“Citi, which was among the world’s biggest banks before suffering heavy losses in the 2008 financial crisis, required a government bailout of $45 billion to stay afloat. Reuters”]  [/caption] It was not immediately clear if the results were comparable with analysts’ average earnings forecast of 84 cents per share, according to  Reuters estimates. The bank — which received two US government bailouts at the height of the financial crisis — is seeing its problem loan portfolio shrink. Nonaccrual loans fell to $7.95 billion from $12.46 billion in the same quarter last year. The bank’s share price has fallen about 40 percent this year, in line with declines for other large banks. Citigroup shares rose 1 percent in premarket trading to $28.67 after the quarterly results were announced. Reuters