Citi posts $4.3 billion profit on one-time gain

NEW YORK - Troubled US banking giant Citigroup said Friday it earned a profit of 4.3 billion dollars in the second quarter, resulting from a big gain on a joint brokerage venture.

By (AFP)

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Published: Fri 17 Jul 2009, 6:23 PM

Last updated: Sun 5 Apr 2015, 10:27 PM

Citi’s results rebounded from a 2.49-billion-dollar loss in the same period a year ago, but the profit came from a one-time pretax gain of 6.7 billion dollars from creating the Morgan Stanley Smith Barney joint brokerage.

The deal closed June 1 put Citi’s Smith Barney unit together with the trading division of Wall Street rival Morgan Stanley.

Total revenues were 30 billion dollars, up a sharp 12.4 billion from the second quarter of 2008, due primarily to the Smith Barney gain.

‘For many quarters we have been consistently and successfully executing our plan to build financial strength and return Citi to sustained profitability and growth,’ said Citi chief executive Vikram Pandit.

‘We have made significant progress in recent quarters as evidenced in the significant decline in expenses, headcount, assets, including Citi’s riskiest assets, as well as our 12.7 percent Tier 1 capital ratio.’

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