Citigroup earnings rise 48%, beating analyst estimates

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Citigroup Inc. C, +1.22% said Thursday its net income climbed 48% to $4.6 billion, or $2.15 per share, from $3.1 billion, or $1.36 a share, in the year-ago quarter. Revenue fell 1% to $17.2 billion including a pre-tax loss of about $680 million tied to the sale of its Australia consumer business unit. Excluding this item, revenue increased 3% amid growth in its institutional clients unit. The bank released $1.1 billion in loan loss reserves. Net interest revenue dropped 3% to $1.85 billion from $1.91 billion. Analysts expected Citi to earn $1.71 a share on revenue of $16.98 billion, according to a survey by FactSet. A lower cost of credit drove earnings, partially offset by lower revenue and higher expenses. Shares of Citi rose 1.5% in pre-market trades. The stock is up 14% this year, compared to a rise of 16.2% by the S&P 500.