US banking giant Citigroup Monday reported a 30 percent increase in first-quarter net income from a year earlier due to higher revenues and lower net credit losses.
Citigroup posted net income of $3.8 billion on revenues of $20.5 billion in the first quarter of 2013, up from $2.9 billion on $19.4 billion in the year-ago quarter.
A key driver of the earnings increase was lower net credit losses, the ratio of current credit-related losses on a mortgage-backed security to the original value of the security, the bank said in a statement.
Citi reported a loss of $3 billion in this category compared with $4 billion in the year-ago period.
“During the quarter, we benefited from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment,” said Citigroup chief executive Michael Corbat.
“However, the environment remains challenging and we are sure to be tested as we go through the year.”
Citigroup Q1 profit surges 30%
